What is the story about?
Rising global debt levels are the primary driver behind the surge in gold prices, said David Tait, CEO of the World Gold Council, while speaking at the Times
Network India Economic Conclave 2025. According to Tait, factors such as tariffs and short-term macroeconomic developments are largely “side shows.” He emphasised that gold’s long-term rally is rooted in deeper structural issues rather than temporary geopolitical events. Tait expressed confidence that gold prices will continue to rise in 2026, citing six key reasons:
- Deregulation in China, which could further stimulate gold demand
- Weakening global currencies
- Persistent geopolitical tensions
- Trade and tariff-related stress
- Growing nuclear risk
- Worsening financial and fiscal instability
He clarified that the ongoing rally is not primarily driven by the Ukraine war or tariff disputes, noting that such events tend to come and go. What remains, however, is the sustained financial stress caused by excessive government spending. Pointing to the UK, Tait remarked that it is an example of a government struggling to rein in expenditure.
On price projections, Tait suggested that gold touching $6,000 per ounce (Nearly 1,92,800 per 100 grams) by 2026 does not seem far-fetched. He added that the rally is unlikely to pause unless there is a meaningful reduction in global debt levels.
Commenting on central bank behaviour, Tait said central banks are expected to continue increasing their gold reserves. In addition, investor demand for gold is likely to grow steadily over time, further supporting prices.
About The Times Network India Economic Conclave 2025
Over the past decade, the Times Network India Economic Conclave has emerged as a premier platform shaping India’s economic dialogue, with its themes often influencing national policy debates and public discourse. Now in its 11th edition, the conclave’s theme for 2025 is “Navigating Geoeconomics.” The event brings together policymakers, economists, business leaders, and global influencers to explore strategies for accelerating India’s economic growth.
