New Delhi, Aug. 21 -- Jefferies has turned increasingly bullish on gold, citing worsening fiscal conditions in the US and Japan, growing constraints on monetary policy and improving cash generation among gold-mining companies, according to its latest GREED & fear report.

The brokerage said the deteriorating fiscal position of the US, coupled with rising government debt-servicing pressures, is creating a favourable environment for gold. US federal government debt has crossed the USD 40 trillion milestone, while the fiscal deficit for the first ten months of the current financial year has already surpassed the full-year deficit recorded in FY25.

Jefferies noted that the US fiscal deficit rose to USD 432 billion in July, the highest monthl...