The Impressive TimesNew Delhi, January 13: Gold prices are likely to continue rising and may reach the USD 5,000 per ounce mark as uncertainty in the global economy shows no signs of easing, according to Sadaf Sayeed, Chief Executive Officer of Muthoot Microfin.
Speaking on current market trends, Sayeed said gold has traditionally been viewed as a safe investment during periods of instability. She pointed out that frequent geopolitical and economic developments across the world are pushing investors towards gold as a hedge against volatility.
According to her, several global financial institutions have projected a sharp rise in gold prices, driven by sustained demand and ongoing uncertainty in international markets. She added that whenever volatility increases, investor confidence in gold strengthens, supporting higher price levels.
Commenting on silver and other commodities, Sayeed said prices are influenced by a combination of demand and supply constraints. She noted that export restrictions imposed by some countries on precious metals and commodities have reduced availability in the market. When scarcity coincides with strong demand, prices tend to move upward, she explained, adding that silver has already seen notable gains and further movement will depend on supply dynamics.
On the business front, Sayeed said Muthoot Microfin has witnessed a recovery after a challenging phase for the microfinance sector. While the industry as a whole experienced a slowdown last year, the company is expecting around 15 per cent growth in the current financial year.
She revealed that the company’s loan disbursements are improving steadily, with total disbursements projected to reach nearly ₹10,000 crore this year. Quarter-on-quarter growth in disbursements is estimated at 10 to 15 per cent, reflecting improving demand and stability in the sector.
Looking ahead to the Union Budget, the Muthoot Microfin CEO said liquidity remains the most pressing concern for the microfinance industry. She said the sector has been seeking a credit guarantee mechanism that would encourage banks to lend more freely to non-banking financial companies involved in microfinance.
Sayeed expressed hope that the upcoming budget would introduce measures such as a credit guarantee scheme, which could significantly boost fund flow to NBFC-MFIs and strengthen financial inclusion. She also suggested the creation of a refinancing facility for microfinance institutions, similar to the support provided to housing finance companies, to ensure smoother access to capital for the sector.
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