By Shailesh Yadav

New Delhi [India], January 13 (ANI): 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)