Gold price to double at $10,000 in next 5 years? Jefferies’ Chris Wood makes bold prediction!

In a remarkable claim, gold prices could surge to $10,000 within five years, Chris Wood, Global Head of Equity Strategy at Jefferies, said, adding that the precious metal remains in a powerful structural bull market driven by geopolitical risk and central bank buying.

“In my view, gold can easily reach $10,000 within five years,” the market veteran said in an interview to ET Now. The claim comes at a time of escalating tensions in the Middle East after the US and Israel attacked Iran, triggering a sharp rally in gold prices driven by heightened safe-haven demand.

According to him, gold, along with oil stocks, remains one of the few effective hedges against escalating geopolitical risks. A potential additional catalyst, he suggested, could be a revaluation of gold held on the US Treasury’s balance sheet. He pointed out that US government gold is carried at a very low historical price. “I think it is $32 an ounce,” and said a re-evaluation is “definitely a possibility.” Such a move, he noted, could theoretically allow the government to monetise the Treasury balance sheet and buy back debt.


Wood said that the rally over the past three to four years was due to aggressive buying by central banks outside the G7. He said this trend accelerated after the freezing of Russian foreign exchange reserves in 2022 during the Ukraine-Russia conflict. Since then, based on World Gold Council data, there has been consistent net buying by central banks every quarter, primarily from outside the G7 bloc.

The move reflected a silent reassessment, he said. “If reserves could be frozen for one country, it could theoretically happen to others.” Notably, he highlighted that at current prices, central banks globally now hold more gold than US Treasury bonds.

As for current strategy, Wood noted that investors holding gold on leverage may consider booking some profits after the strong move. “If you own gold on leverage, I would take some profits here because it was a big move.”

However, for those who own gold structurally, his advice is to remain invested. That said, he cautioned that markets could enter a consolidation phase. “You should be prepared to logically have a period of consolidation. That could last between 6 to 18 months.”

Wood acknowledged that his bullish thesis could face challenges if the Federal Reserve turns significantly more hawkish. “If the Federal Reserve really starts being much more hawkish, then obviously I will be wrong and gold will correct.” However, he added that it is “really hard to see that happening in reality.”

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)