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Gold Prices May Soar to $5,000 as Global Uncertainty Drives Demand

The CEO of Muthoot Microfin predicts gold prices could climb toward $5,000 per ounce as ongoing global uncertainty sustains its role as a key hedge. She also explains that silver prices are influenced by both demand and supply-side scarcity. On the business front, Muthoot Microfin is projecting 15% growth this financial year with disbursements nearing Rs 10,000 crore. For the upcoming budget, the sector is advocating for a credit guarantee scheme to improve liquidity and fund flow to NBFC-MFIs.

Key Points: Gold to Hit $5,000? Muthoot Microfin CEO on Prices & Budget

  • Gold seen as natural hedge amid volatility
  • Prices could touch $5,000 per ounce
  • Muthoot Microfin projects 15% annual growth
  • CEO calls for budget credit guarantee scheme
  • Silver prices driven by demand and scarcity
2 min read

Gold prices set to hit USD 5,000 amid global uncertainty, says Muthoot Microfin CEO

Muthoot Microfin CEO forecasts gold reaching $5,000/oz as a hedge against volatility. The firm also projects 15% growth and seeks budget support.

"Globally, people use it to hedge any sort of volatility and uncertainty. - Sadaf Sayeed"

By Shailesh Yadav, New Delhi, January 13

Gold prices are expected to continue their upward trajectory toward USD 5,000 per ounce as global uncertainty persists, according to Sadaf Sayeed, CEO of Muthoot Microfin, one of India's leading microfinance institutions.

In an interview with ANI, the CEO of Muthoot Microfin spoke on market developments and emphasized that gold remains a natural hedge against volatility. "Globally, people use it to hedge any sort of volatility and uncertainty. As the volatility in the global market is continuing, and every day there is a new development happening, people's natural hedge is gold," he said.

The CEO noted that various banks have estimated gold prices could touch approximately USD 5,000, driven by sustained demand amid ongoing global uncertainties.

Addressing silver price movements, Sayeed explained that commodity prices are driven by both demand and scarcity. "Certain countries have taken steps to restrict the export of precious metals and certain other commodities. As the scarcity of the commodity is there and the demand will be there, the prices will go up," he said.

While acknowledging that silver has already seen significant gains, Sayeed indicated that further increases depend on supply dynamics.

On the microfinance front, Sayeed said that Muthoot Microfin has reported positive momentum after a challenging previous year. While the industry overall experienced degrowth, Muthoot Microfin is projecting 15 per cent growth for the current financial year.

"Quarter on quarter, disbursements are picking up. Our disbursements will touch around Rs 10,000 crores for this financial year, and they are improving quarter on quarter at 10 per cent to 15 per cent," Sayeed revealed.

Looking ahead to the upcoming budget, the Muthoot Microfin CEO highlighted liquidity as the sector's most critical requirement. The microfinance industry has been advocating for a credit guarantee scheme to enable banks to fund NBFC-MFIs more freely.

"We expect that in this budget, the honorable finance minister will definitely offer some sort of credit guarantee scheme, which will enable the banks to fund NBFC-MFIs freely, and that will really help the sector to grow," Sayeed said. She emphasized that such a measure would ensure better flow of funds to the bottom of the pyramid.

The sector has also recommended establishing a refinancing window for microfinance, similar to the National Housing Bank's facility for housing finance companies. "Something similar can be created for microfinance," Sayeed suggested.

- ANI

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Reader Comments

R
Rohit P
$5000 per ounce? That's a massive jump. While gold is a safe haven, such high predictions can create a bubble. Hope regular middle-class families like mine don't get priced out of buying small amounts for savings. The focus should also be on other investment avenues.
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Aditya G
Good to see Muthoot projecting growth. Microfinance is crucial for small entrepreneurs in tier 2 and 3 cities. The credit guarantee scheme request makes perfect sense - it will ensure funds reach the people who need it most and boost local economies.
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Sarah B
Interesting perspective from India. In the West, we often look at gold ETFs or mining stocks. The cultural emphasis on physical gold as a direct hedge is very different. The microfinance angle is also something we don't hear much about in global financial news.
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Karthik V
The part about silver is key. Many are looking at silver as a more affordable alternative. But if exports are restricted and industrial demand stays high, its price could become volatile too. Need to do proper research before jumping in.
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Nikhil C
While I respect the CEO's view, we must be cautious. These high price predictions often come from institutions that have a stake in the market. For the common man, a balanced portfolio is better than going all-in on gold, even in uncertain times.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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