Emkay Wealth Management has forecast a 12 percent growth potential for gold, driven by steady buying from central banks and shifting interest rate trends. Meanwhile, silver continues to show higher price volatility with technical resistance between $68 and $74 per ounce. Investors should note that while the long-term outlook remains positive, both metals are experiencing short-term price pressure due to recent profit-taking.
Precious metals are experiencing a period of cooling on September 4, 2026, as investors book profits following recent price increases. Despite this short-term dip, Emkay Wealth Management has shared an optimistic outlook for the sector, predicting a potential 12 percent gain for gold in the coming months.
The Case for Gold
Gold is currently supported by a key trend: central banks across the world are consistently buying the metal to strengthen their reserves. Another factor driving this sentiment is the expectation of global interest rate cuts. When interest rates fall, gold becomes more attractive to investors because other safe investments, like bonds or bank deposits, offer less return. For this positive trend to continue, technical analysts are monitoring whether gold can stabilize and hold its price above the $4,550 level.
Silver’s Industrial Volatility
Silver is currently following a different path than gold. Because silver is used extensively in manufacturing and industrial processes, its price is much more sensitive to changes in economic demand. This makes it prone to sharper price swings compared to the yellow metal. Currently, silver is facing technical difficulty in moving past the $68 to $74 per ounce price range. Investors considering silver should be prepared for higher volatility, as the metal often reacts more aggressively to shifts in market sentiment.
Market Perspective for Investors
Many retail and institutional investors in India have gained exposure to precious metals through exchange-traded funds (ETFs). Over the past year, major funds like HDFC Gold ETF and Nippon India ETF Gold BeES have reported returns exceeding 43 percent, while silver-linked products such as the ICICI Pru Silver ETF have seen even higher gains of over 95 percent. These historical figures reflect strong past interest, though they do not guarantee similar results in the future.
Risks and Monitorables
The immediate risk for the precious metals market is profit-taking, where investors sell to lock in gains after a rapid rise in prices. Additionally, there is uncertainty regarding future monetary policy changes from global central banks. The market is currently waiting for new inflation reports and labor market data to understand the next direction for interest rates. Investors may want to keep a close watch on these upcoming data releases, as they will play a significant role in determining whether the current price consolidation is just a temporary break or a shift in the broader trend.