Gold at $3,800–4,000: Could an AI spending crash trigger the next bullion rally? Jefferies explains

Jefferies' Christopher Wood warns that a slowdown in AI spending could weaken US economic growth and revive expectations of Federal Reserve rate cuts. With gold consolidating around $3,800–4,000 per ounce, could a deeper technology stock correction trigger the next bullion rally?

Gold prices could regain momentum if the artificial intelligence (AI) investment boom suffers a sharp slowdown, potentially weakening the US economy and prompting the Federal Reserve to reconsider its interest rate outlook, according to Jefferies' Christopher Wood.

In his latest GREED & fear report, dated November 5, Wood highlighted that gold has recently traded near the lower end of the $3,800–4,000 per ounce consolidation range identified by him following the metal's strong rally in 2025 and early 2026.

However, this range represents Wood's assessment of recent trading conditions rather than a guaranteed support level or a specific price target.

Nifty 500 won 9 years, gold 7 and silver 5 since 2006According 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.

Gold prices also depend on real bond yields, dollar movements, inflation expectations and investor demand.

The US 10-year Treasury yield had already declined 49 basis points from its October 7 peak of 5.36%, reflecting growing demand for bonds amid technology-market volatility.

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