Gold Prices May Hit $10,000 Per Ounce: Jefferies Analyst Predicts

Gold prices in India may rise significantly due to various factors such as geopolitical tensions, physical demand, and uncertainty in global merchandise markets. Financial analyst Chris Wood of Jefferies predicts that gold prices could reach $10,000 per ounce in the long-term.

This prediction is based on Wood's belief that severe US and Japanese fiscal strains will weaken the US dollar, boosting gold prices worldwide. He notes that soaring US Treasury yields would exacerbate the US debt crisis, leading to the administration fixing or capping US bond yields.

According to Wood, once the US government begins fixing US bonds, it would be good news for equities and gold in emerging markets. In India, this could mean MCX gold rates reaching ₹3 lakh per 10 grams. Currently, the USD-INR conversion rate is around ₹96, so $10,000 per ounce would translate to ₹9,60,000 per ounce.