Rama Krishna Sangem
Here is a tip for gold lovers. Gold prices will reach Rs 1.81 lakh per tula by 2029, in next four years. Or maybe more!
Better you buy more gold, than real estate or shares in the coming years as the price of yellow metal is likely to grow fast and furious. This is the prediction from Chris Wood, gold expert and its forecaster. Believe him, the price of gold will grow up to 6000 US dollar for ounce (28.35 grams). That means, it will go up to Rs 1.81 lakh per 10 grams or tula in India.
The rrally in gold prices is still ongoing as the geopolitical and geoeconomic uncertainty is still looming over the global landscape. Chris Wood, Global Head of Equity Strategy at Jefferies, raised his long-term gold forecast, projecting the rise of the yellow metal crossing $6600 per ounce in the upcoming year. This could mean that the gold crossing is beyond Rs 2 lakh per 10 grams as per the current currency exchange rate.
In the report Greed and Fear, Wood opined that based on historical rates clubbed with rising per capita income of US households, gold could sustain this long-term upward trend. His revised projection comes just as gold touched a record high of $3,700 per ounce ahead of the Federal Reserve’s policy decision. The current price stands at near $3600, and Indian spot prices are at around Rs 112,845 per 10 grams.
Chris Wood, best gold analyst
Wood is known for making predictions on the gold prices and has a long track record of it. In 2002, he made a projection and set a target of $3400 per ounce that was achieved by gold only after 23 years. That estimate was based on the 1980 peak price of $850 per ounce, adjusted for US per capita income growth of 6.3 percent annually. The projection made by him has steadily risen over time from $4,200 in 2016 to $5,500 in 2020 and now $6,600 in 2025.
As per his views, he said if gold could once again account for 9.9 percent of US per capita household income, as it had happened at the height of the 1980 bull market, the price could align with his new projection. He, reportedly, has maintained a heavy allocation to gold in his Greed and Fear portfolio, holding 40 percent since 2002, later reduced from 50 percent in 2020 when Bitcoin was introduced into his mix
A major reason for this sudden surge in gold prices is uncertain geopolitical conditions and public confidence in the yellow metal compared to any other instrument of investment.
