New Delhi [India], November 8 (ANI): Christopher Wooden, Jefferies’ International Head of Fairness Technique, has indicated that accumulating gold could be a good suggestion if the costs are likely to taper a bit, with the rationale that the bullion’s 200-day transferring common is at present about 23 per cent beneath the height.
On the time of submitting this report, gold futures have been buying and selling at USD 4,009.80 per ounce, in response to publicly obtainable market information.
Wooden, in his widespread weekly report ‘GREED & worry’, famous that he views the present 200-day transferring common and hopes of additional decline in gold costs as “a superb stage to build up extra gold.”
“In the meantime, with the 200-day transferring common at present at US$3,371/oz or 23.1% beneath the height, this, in GREED & worry’s view, is an efficient stage to build up extra gold if bullion corrects additional, which is actually attainable,” the report learn.
With the gold value now at USD 4,012 per ounce, it could take an additional 16 per cent decline to succeed in that stage.
Moreover, the GREED & worry report famous that studies of job cuts within the US additionally made gold a compelling funding case.
“The funding case for gold may have been improved by the most recent Challenger Report on US job minimize bulletins launched immediately, which, within the persevering with absence of the payroll information, has supplied extra proof of a weakening labour market,” Wooden’s report learn.
Globally, gold costs have been edging up over the previous weeks and months, pushed by a optimistic contribution from a world rise in inflation expectations, tariff tensions, safe-haven funding, and industrial demand. The uncertainties surrounding President Trump’s reciprocal tariffs plan and counter-tariffs additionally got here as a shot within the arm to worldwide gold costs.
Traditionally, gold, as an asset, is taken into account to be a haven because it sometimes manages to retain or admire its underlying worth in occasions of turbulence.
The GREED & worry report has asserted that it continues to see studies indicating that gold now constitutes a bigger portion of worldwide central banks’ official reserves than US Treasury securities.
“Such a improvement would clearly be an enormous deal,” it supplemented.
Citing US Treasury information, Wooden mentioned international official holdings of Treasury securities totalled USD 3.924 trillion on the finish of July, the most recent information obtainable, down from a peak of USD 4.265 trillion in February 2020.
Against this, IMF information, in response to Wooden, confirmed that world gold reserves totalled round USD 3.858 trillion on the finish of July, based mostly on a gold value of USD 3,299 per ounce at the moment.
“Since then, central banks’ gold reserves have elevated to 1,171.18m oz as on the finish of September, the most recent information obtainable from the IMF, or US$4.48tn based mostly on the prevailing gold value of US$3,825/oz on the finish of September,” the report learn.
Shopping for by central banks world over additionally inched up gold costs. Central banks purchased a web 219.9 tonnes of gold in Q3 2025, up from 172 tonnes in Q2 2025, in response to the World Gold Council, Wooden mentioned.
On the present market value of about USD 4,012 per ounce, the worth of gold reserves may have risen to USD 4.70 trillion, far exceeding the worth of international official holdings of Treasuries on the finish of July, Wooden mentioned in his report.
In line with the most recent World Gold Council report, the optimistic momentum on gold was pushed by a robust mixture of an unsure and unstable geopolitical setting, US greenback weak point and investor “FOMO” as the worth climbed larger. Traders continued to pile into bodily backed gold ETFs for a 3rd consecutive quarter, in July-September 2025.
“Heightened geopolitical tensions, cussed inflationary pressures and uncertainty round international commerce coverage have all fuelled urge for food for safe-haven property as traders look to construct resilience of their portfolios,” Louise Avenue, Senior Markets Analyst on the World Gold Council, had mentioned.
In line with Louise Avenue, the outlook for gold stays optimistic, as continued US greenback weak point, decrease rate of interest expectations, and the specter of stagflation might additional propel funding demand.
“Gold has set file after file this 12 months, and the present setting suggests there could possibly be extra upside good points for gold. Our analysis signifies the market shouldn’t be but saturated, and the strategic case to carry gold stays firmly in place,” the WGC Senior Markets Analyst added. (ANI)
