Jefferies strategist predicts gold could reach $10,000 per ounce

Christopher Wood, Head of Global Equity Strategy at Jefferies, predicts that gold could reach $10,000 per ounce in the long term. Despite current market consolidation, Wood maintains that the long-term upward trend remains intact.

Wood advises investors who do not currently hold gold to consider purchasing it immediately, regardless of current price levels. For those who already hold positions, he suggests that potential price corrections toward the $3,800-$4,000 range could present opportunities to increase holdings.

The strategist attributes this bullish outlook to the deteriorating fiscal position of the United States. He argues that the worsening US fiscal outlook may limit the Federal Reserve's ability to maintain high interest rates for an extended period, creating a supportive environment for gold prices. Additionally, Wood highlighted the importance of including physical and real assets, such as gold and copper, in portfolios to hedge against geopolitical risks.