Gold's Bullish Run: Expert Forecasts USD 5,000 Amid Uncertain Times

Gold prices are projected to hit USD 5,000 per ounce due to global uncertainty, as per Muthoot Microfin CEO Sadaf Sayeed. While silver prices depend on supply, Muthoot reports a 15% growth forecast in microfinance, emphasizing the need for credit guarantees to boost liquidity and sector growth.

Gold prices are anticipated to surge toward the USD 5,000 mark per ounce, with ongoing global uncertainties as a backdrop, according to Sadaf Sayeed, CEO of Muthoot Microfin. In an interview with ANI, Sayeed underscored gold's role as a natural hedge against market volatility.

The CEO highlighted that international banks predict this upward trend due to sustained demand. "As markets remain turbulent and new developments unfold daily, gold continues to serve as a reliable hedge," he noted.

On silver, Sayeed pointed to commodity pricing's reliance on demand and scarcity. "Export restrictions on precious metals by some countries have resulted in increased prices," he commented, while signaling further price hikes depend on supply scenarios.

Muthoot Microfin has reported positive traction following a difficult period, as per Sayeed. The microfinance giant anticipates a 15% growth rate for the current financial year, with disbursements projected to touch Rs 10,000 crores, marking a quarterly improvement of 10-15%.

Sayeed emphasized the importance of liquidity, highlighting an industry-wide call for a credit guarantee scheme from the upcoming budget to enable banks to fund NBFC-MFIs more easily. "A credit guarantee scheme could enhance sector growth," she said, adding that microfinance also requires a dedicated refinancing window akin to that for housing finance companies.

(With inputs from agencies.)