The value of gold the Indian households are sitting on is as much as 56% of the nominal GDP in FY26 and is also bigger than the bank credit, which is only 55% of the economy, according to a foreign brokerage.
The brokerage forecast a further rally in gold, which is already quoting near record highs. The 25,000 tone of gold holding with the Indian households is the world’s largest and represents 14% of the global gold stock and at current prices is worth $2.4 trillion, Tanvee Gupta Jain, chief economist at UBS Securities India, said in a note.
She also said their house view on gold price is that the yellow metal will again touch $3500 per ounce in FY26. On April 22, the price had crossed this mark by a notch at $3501 for an ounce/28.8 grams of gold.
“We believe the case for gold has become more compelling in an environment of escalating tariff uncertainty, weak growth, high inflation and lingering geopolitical risks. As most of domestic gold demand is met by imports (87%), higher global gold prices (although we expect softer gold volume demand) imply that our net gold imports could remain high at $55-60 billion or 1.2% of GDP) in FY26. However, we expect current account deficit to remain manageable on additional buffers created after the pandemic in the form of services trade surplus and remittance flows” she said.
Forecasting for a further rally in gold, which is already quoting near record highs, a foreign brokerage has said the value of the 25,000 tonne gold at $2.4 trillion that our households sit on is as much as 56% of the nominal GDP in FY26 and is also bigger than the bank credit which is only 55% of the economy. The 25000 tone of gold holding with the households is the world’s largest and represents 14% of the global gold stock and at current prices is worth $2.4 trillion which is as much ad 56% of the FY26 nominal GDP. This compares with the country’s outstanding bank credit of around only 55% of GDP, Tanvee Gupta Jain, the chief economist at UBS Securities India said in a note.
She also said their house view on gold price is that the yellow metal will again touch $3500 per ounce in FY26. On April 22, the price had crossed this mark by a notch at $3501 for an ounce/28.8 gram of gold. “We believe the case for gold has become more compelling in an environment of escalating tariff uncertainty, weak growth, high inflation and lingering geopolitical risks. As most of domestic gold demand is met by imports (87%), higher global gold prices (although we expect softer gold volume demand) imply that our net gold imports could remain high at $55-60 billion or 1.2% of GDP) in FY26. However, we expect current account deficit to remain manageable on additional buffers created after the pandemic in the form of services trade surplus and remittance flows” she said.