Jefferies just made a bold gold prediction that could change your portfolio forever

Jefferies is doubling down on gold. In its latest GREED & fear report, the firm maintains a bullish stance with a long-standing target of $5,000/oz, driven by structural global debt issues and expectations of aggressive monetary easing by the Fed.

For Indian bullion buyers, the signal from Jefferies is loud and clear: stay invested. The report outlines that gold's upward trajectory is far from over, with the metal set to benefit from a "stagflationary" global environment where economic growth slows, but inflation persists.

Jefferies argues that unprecedented fiscal profligacy across major economies, especially in the U.S., makes it increasingly difficult for central banks to hike rates meaningfully without crashing their economies. This sets the stage for a return to easy money, which historically pushes investors toward hard assets like gold.

The firm also underscores that U.S. debt-to-GDP ratios are approaching critical levels, making real interest rates unsustainable. In such an environment, gold regains its appeal as a monetary anchor—especially if fiat currency confidence wavers.

From an Indian lens, this view aligns well with domestic demand. India remains one of the largest consumers of gold globally, with a deeply entrenched cultural and investment interest in the metal. If Jefferies’ target of $5,000/oz plays out, it implies over 2x upside from current international levels and even greater gains in INR terms if the rupee weakens.

Importantly, Jefferies notes that the shift toward gold is not just retail-driven. Central banks globally are increasing their gold reserves, with China and India notably accumulating the metal to hedge against geopolitical and currency risks.

For bullion investors, the takeaway is straightforward: gold remains a core holding in an uncertain world where debt, deficits, and dovish monetary policy are likely to dominate for the foreseeable future.