Gold at $3,800-4,000: Could an AI spending crash trigger the next bullion rally? Jefferies explains
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Jefferies says a potential slowdown in AI spending could trigger a gold rally.
- ✓AI capital expenditure drove 67% of US GDP growth through September 2026.
- ✓If this spending falls, the Federal Reserve might ease interest rates.
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- Indian Markets
- Reported By
- Business Today
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- 3 Minute(s)
- Market Focus
- India Economy
However, this range represents Wood's assessment of recent trading conditions rather than a guaranteed support level or a specific price target.
Why could an AI slowdown benefit gold?
Wood believes the unprecedented AI capital expenditure cycle in the United States may be approaching its peak, with financial markets increasingly reluctant to fund technology infrastructure investments.
According to Jefferies, AI-related capital expenditure contributed 1.39 percentage points, or 67%, of US real GDP growth of 2.1% in the four quarters to September 2026.
This suggests that any substantial reduction in AI spending could have consequences beyond technology stocks, potentially affecting economic growth and monetary policy expectations.
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