Gold rate today in India: The precious yellow metal has been sustaining above ₹1,50,000 per 10 gm, forming a strong base around ₹1,42,000 and ₹1,35,000 per 10 gm. According to market experts, the gold price in India is expected to see significant upside due to the fast-approaching festival season, which is fueling demand for physical gold. They said that geopolitical tensions, physical demand, and uncertainty in global merchandise markets due to uncertainty around crude supply are important factors expected to fuel gold prices worldwide. However, Jefferies‘ financial analyst Chris Wood is highly bullish on gold. He believes that gold prices may reach $10,000 per ounce in the long term.
Why is Jefferies’ Chris Wood bullish on gold?
On why gold prices would touch $10,000 per ounce in the long-term, Chris Wood of Jefferies said, “Gold (rates) reaching $10,000 per ounce is entirely feasible over the long term due to severe US and Japanese fiscal strains.” He said that soaring US Treasury yields would exacerbate the US debt crisis, and the US administration would be forced to fix or cap US bond yields.
“This would weaken the US dollar (USD), which is expected to boost the gold prices across the world,” said Christopher Wood of Jefferies, adding, “The evidence of Treasury Secretary Scott Bessent trying to manipulate the US bond yields between 5% to 6% are already visible. If the US bond yield fails to succumb to this manipulation, then the US government would try to fix the US Treasury yields.”
“Once they (US government) begin fixing the US bonds, it would be great news for the equities and gold in the emerging markets,” said Woods.
What does Chris Wood’s prediction mean for MCX gold rates?
The Head of Equity Research at Jefferies concluded, “So, gold at $10,000 per ounce, which is entirely feasible in such an environment, as I highlighted, would massively monetise Indian household balance sheets.”
For Indian investors, gold rates touching $10,000 permounce would mean crossing ₹3 lakh per 10 gm. Currently, the USD-INR conversion rate is around ₹96. So, $10,000 per ounce would mean ₹9,60,000 per ounce. Now, one ounce equals 28.3495 grams.
So, the MCX gold rate would fall around ₹3,38,630 [(9,60,000 / 28.3495) x 10].
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
