Gold Prices Could Double to $10,000 Amid Weakening Dollar Trend

Chris Wood, global head of equity strategy at Jefferies, believes gold prices can rally further and double to $10,000 per ounce. This prediction comes from the weakening US dollar trend that he thinks is inevitable. According to Wood, fixing US bond yields would weaken the dollar, making gold more attractive.

He points out that the US Federal Reserve may not be able to raise interest rates significantly due to a large fiscal deficit and lack of 'political will' to cut entitlements. This has led to Treasury Secretary Scott Bessent attempting to manipulate bond yields via an expanded bond buyback programme.

Wood argues that eventually, the US authorities will have to fix bond yields by suppressing them. When this happens, it would signal a long-term weakening trend in the dollar, which would be beneficial for emerging markets and gold prices.

In such a scenario, Wood believes gold at $10,000 per ounce is 'feasible', as it would massively monetize Indian household balance sheets. He also notes that the US authorities could revalue their gold reserves to buy back debt, providing another potential manipulation option.