Golden Future: Motilal Oswal Bets Big on Commodities in 2026

After two years of global uncertainty, shifting interest-rate cycles, and uneven equity returns, commodities have quietly emerged as India’s best-performing asset class in 2025. According to Motilal Oswal’s latest analysis, this trend is set to continue into 2026, with precious metals like gold and silver expected to shine even brighter.

 

Why Commodities Are Outperforming

The surge in commodities is not accidental. Central banks worldwide have been aggressively buying gold, reinforcing its role as a safe-haven asset. At the same time, supply constraints in silver and other metals have tightened availability, pushing prices higher. Rising participation through exchange-traded funds (ETFs) has further amplified demand, making commodities a structural play rather than a speculative bet.

 

Precious Metals in Focus

Gold and silver have led the charge, delivering strong returns in 2025. Motilal Oswal believes these metals will continue to dominate in 2026, supported by:

Broader Market Context

Equities, while recovering, have faced patchy performance due to earnings downgrades and volatile sentiment. In contrast, commodities have offered consistent upside, positioning themselves as a reliable hedge against inflation and market instability. Motilal Oswal stresses that this rally is structurally supported, not merely cyclical.

 

Investor Takeaways

For investors, the message is clear: commodities deserve a bigger role in diversified portfolios. Allocating to gold and silver can provide both stability and growth potential. With central banks, institutional investors, and retail participants all driving demand, the sector is poised for sustained momentum.

• Commodities outperformed equities in 2025, with gold and silver leading the rally.
• Central-bank buying and supply shortages are expected to sustain momentum.
• ETF inflows and investor demand provide structural support for precious metals.
• Motilal Oswal sees commodities as a core portfolio asset heading into 2026.

Conclusion

Motilal Oswal’s outlook for 2026 underscores a significant shift in India’s investment landscape. Commodities, led by precious metals, are expected to remain the star performers, offering resilience amid global uncertainty. For investors seeking both protection and upside, gold and silver stand out as the assets to watch.

 

Sources: Zee Business, ANIZee Business