Jefferies' Christopher Wood has said gold could eventually trade at $10,000 an ounce, according to an interview with Business Today TV. The bank's global head of equity strategy remains bullish on the metal over the long term, even though it is currently in a consolidation phase.
His case rests largely on the fiscal position of the United States. Wood argues that Washington will struggle to sustain significantly higher interest rates given its debt burden, a scenario that historically supports gold because the metal pays no yield and tends to benefit when real rates fall.
US fiscal pressures and interest rates
Wood's view ties into a familiar theme for gold investors: the relationship between government borrowing, monetary policy and the dollar. If the US cannot afford to keep rates elevated, the argument goes, the Federal Reserve may be forced to ease policy sooner or more aggressively than markets expect. That would reduce the opportunity cost of holding gold, which yields nothing, and could push prices higher.
He made the comments during an exclusive conversation with Sakshi Batra at Business Today TV, where he also discussed the metal's recent price action. Gold has been rangebound in recent weeks, but Wood said this consolidation does not change his long-term bullish outlook.
India's gold lending boom
Wood also highlighted a structural development in India: the growing monetisation of household gold through the expansion of gold lending. Indian households hold large quantities of gold, much of it idle. A bigger gold loan market allows that metal to be put to work, which could increase demand for the metal as collateral and support prices.
He said a move to $10,000 would be a major positive for Indian consumption spending. Higher gold prices tend to lift household wealth in India, where gold is culturally and financially significant, and could support broader economic activity.
What investors should watch
For those already holding gold, Wood suggested adding to positions if prices correct toward the $4,000-$3,800 range. For those without any exposure, he said the current environment may offer a reason to start building a position.
These are recommendations from a strategist with a long-term horizon, not a short-term trading call. Gold remains volatile, and prices could move either way in the near term.
Key takeaways
- Jefferies' Christopher Wood sees gold reaching $10,000 over the long term, driven by US fiscal pressures.
- He argues the US cannot sustain significantly higher interest rates, which would support gold.
- Wood recommends buying gold on dips toward $3,800-$4,000 for existing investors, and buying for those without exposure.
- He highlights India's expanding gold lending market as a structural positive for gold demand and consumption.
Common questions
Why does the US fiscal position matter for gold?
If the US struggles to service its debt, the Federal Reserve may be forced to cut interest rates, reducing the opportunity cost of holding gold and potentially boosting its price.
What is gold lending?
Gold lending involves using physical gold as collateral for a loan. In India, a growing number of households are borrowing against their gold, which can increase demand for the metal and support prices.
Is a $10,000 gold price a prediction?
It is a long-term view from one strategist, not a certainty. Gold prices depend on many factors, including inflation, interest rates and the dollar, and could move differently than expected.
For a real-time view of where the market stands today, see the live gold price.
As with any market, gold carries risk. Wood's comments reflect a long-term thesis, but short-term price action can be driven by data, policy surprises and sentiment. Investors should weigh these factors alongside their own circumstances.