Buy Gold & Silver on Dips, Says Motilal Oswal - Here’s Why

Gold and silver are entering a phase where short-term volatility is masking a structurally strong long-term trend. Prices have corrected from recent highs, but underlying demand drivers remain intact. This creates a clear accumulation window where investors must decide between chasing momentum or building positions strategically. According to Motilal Oswal Financial Services, the smarter approach in 2026 is to buy on dips rather than reacting to price spikes, as macro conditions continue to support bullion over the long term.

Market Performance: Volatility with an Uptrend

Gold and silver have not moved in a straight line this year, but the broader trend remains upward. Gold has gained around 10 percent in 2026, while silver has risen nearly 5 percent despite recent corrections.

Metal	Current Price	Previous Close	Trend
Gold	₹1,53,242 per 10g	₹1,54,609	Mild correction
Silver	₹2,52,230 per kg	₹2,57,142	Sharp pullback

The movement shows a zig-zag pattern driven by global factors like interest rate expectations, currency strength, and geopolitical uncertainty. Data suggests that volatility is increasing, but the base trend remains constructive, which leads to periodic dips becoming entry opportunities rather than trend reversals.

Gold Strategy: Stability, Hedge and Long-Term Wealth

Gold continues to act as the core defensive asset in a portfolio. Its performance is closely linked to macro uncertainty, inflation expectations, and central bank policies.

What drives gold

• Safe-haven demand during geopolitical stress
• Central bank accumulation of reserves
• Inflation hedging and currency protection

Gold is relatively less volatile compared to silver and tends to perform well when economic uncertainty rises or financial markets weaken.

Gold Investment Strategy

• Buy Range: ₹1,48,000 to ₹1,52,000 per 10g
• Add More: Near ₹1,45,000 on deeper corrections
• Target (Medium Term): ₹1,60,000 to ₹1,68,000
• Stop Loss (Short Term): ₹1,43,000

When to Buy Gold

• During corrections triggered by strong dollar or rate fears
• After profit booking phases
• When short-term sentiment weakens despite stable fundamentals

Best Way to Invest in Gold

• Gold ETFs for liquidity
• Sovereign Gold Bonds for long-term compounding
• Digital gold for gradual accumulation

Gold should ideally form 10 to 15 percent of a portfolio as a stability anchor.

Silver Strategy: High Beta Opportunity with Growth Angle

Silver operates differently from gold because it combines precious metal characteristics with industrial demand. This makes it more volatile but also gives it higher upside potential during economic expansion.

What drives silver

• Industrial demand from sectors like solar, electronics, and EVs
• Economic growth cycles
• Investment demand similar to gold

Silver tends to outperform gold in strong growth environments but can correct sharply during uncertainty due to its industrial exposure.

Silver Investment Strategy

• Buy Range: ₹2,30,000 to ₹2,45,000 per kg
• Add More: Near ₹2,20,000 on dips
• Target (Medium Term): ₹2,70,000 to ₹3,00,000
• Stop Loss (Short Term): ₹2,10,000

When to Buy Silver

• After sharp corrections like current decline
• During consolidation phases
• When industrial demand outlook improves

Best Way to Invest in Silver

• Silver ETFs for flexibility
• Commodity trading exposure
• Physical silver for long-term holding

Silver is better suited for investors who can handle volatility and are looking for higher return potential compared to gold.

Why Investment Demand Is Shifting

A major structural shift in 2026 is the transition from physical buying to financial investment in bullion.

Key trends include

• Rising ETF inflows globally
• Increased participation from retail investors
• Institutional portfolio diversification

This indicates that gold and silver are now treated as financial assets rather than purely consumption-driven commodities. Data suggests that rising financial participation leads to more stable demand, which results in stronger long-term price trends.

Hidden Driver: Global Debt and Liquidity

One of the most important drivers of bullion prices is global debt expansion.

High debt levels force central banks to maintain accommodative policies over time. This environment supports gold and silver because real interest rates remain low, currency risks increase, and investors shift toward tangible assets. This is a long-term structural factor rather than a short-term trigger.

What Most Investors Get Wrong

Many investors enter gold and silver after strong rallies, assuming prices will continue rising immediately.

This approach is flawed because

• Bullion rarely moves in a straight line
• Corrections are part of the cycle
• Buying at peaks reduces long-term returns

Another common mistake is treating gold and silver as identical assets, while in reality they behave very differently in terms of volatility and demand drivers.

Contrarian Insight: Corrections Improve Returns

Recent price declines are often seen as negative signals, but they actually improve the risk-reward ratio for investors.

Temporary factors like dollar strength and profit booking create dips. These dips allow accumulation at better levels, which leads to stronger long-term returns and more stable portfolio positioning.

Future Outlook: What Will Drive Prices

Key macro triggers for bullion in 2026 include

• Interest rate decisions by global central banks
• Inflation trends
• Geopolitical developments
• ETF and institutional flows

If monetary easing begins later in the year, gold could see renewed momentum, while silver may outperform due to its industrial demand component.

Actionable Strategy

For conservative investors

• Focus primarily on gold
• Accumulate gradually on dips

For aggressive investors

• Combine gold and silver exposure
• Use silver for higher return potential

For traders

• Focus on support levels
• Avoid chasing sharp rallies

Final Take

Gold and silver are in a structured uptrend driven by macroeconomic shifts and evolving investment behavior. Gold offers stability and protection, while silver provides higher growth potential with added volatility. Investors who differentiate between the two and follow a disciplined buy-on-dips approach are better positioned to benefit from the long-term opportunity in bullion.

Which is better in 2026, gold or silver

Gold is more stable and suitable for wealth preservation, while silver offers higher return potential with greater volatility. A balanced allocation can help optimize both stability and growth.

Why is buying on dips important in bullion

Bullion prices move in cycles. Buying during corrections improves entry price, reduces downside risk, and enhances long-term returns compared to buying at peak levels.

How much allocation should investors give to gold and silver

Gold can form 10 to 15 percent of a portfolio, while silver allocation should be smaller and aligned with risk appetite due to its higher volatility.