What Happens To Gold If The AI Boom Cools? Jefferies Has An Answer
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Christopher Wood of Jefferies said a slowdown in AI spending could boost gold prices.
- ✓He noted that AI investment drove most US growth through September 2026.
- ✓If companies cut this spending, the economy might struggle.
Story at a Glance
- Category
- Indian Markets
- Reported By
- NDTV Profit
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Most investors watching gold this year have kept their eyes on the Federal Reserve, US bond yields and the dollar. Christopher Wood, global head of equity strategy at Jefferies, wants them to look at Silicon Valley as well.
In the Nov. 5 edition of his weekly 'GREED & fear' note to clients, Wood makes the case that the next big push for gold could come from a slowdown in AI spending, according to a Business Today report on the note.
The argument hinges on how much of America's recent growth depends on a handful of technology companies.
By Wood's numbers, AI-related capital spending added 1.39 percentage points to US real GDP growth in the four quarters to September 2026. With the economy growing 2.1% over that period, AI investment accounted for roughly two-thirds of all US growth.
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