Why Chris Wood sees gold as hedge amid war

Meanwhile, the Economic Times daily newspaper is available online now.

Key points

• Why Jefferies' Chris Wood sees gold as the second-best hedge against the backdrop of Iran war and fiscal risks.
• Jefferies' Christopher Wood sees gold as the second-best hedge for investors against the backdrop of rising geopolitical and fiscal risks linked to the Iran conflict.
• Gold is the second-best hedge for investors against the backdrop of rising fiscal and geopolitical risks, according to Jefferies global head of equity strategy Christopher Wood.
• Under these conditions, gold is projected to remain relatively rangebound, within a range of ±5%.
• While the cost gap between crude oil and refined products such as diesel has continued to widen, the Strait of Hormuz consequently remains essentially closed to most ships.

Why Jefferies' Chris Wood sees gold as the second-best hedge against the backdrop of Iran war and fiscal risks. ETMarkets.comLast Updated: Aug 21, 2026, 12: 45: 00 PM IST.

Jefferies' Christopher Wood sees gold as the second-best hedge for investors against the backdrop of rising geopolitical and fiscal risks linked to the Iran conflict. While he prefers oil and energy stocks as the primary hedge, Wood expects gold and gold miners to benefit from renewed monetary easing expectations, geopolitical shocks and persistent fiscal reservations. Listen to this article in summarized format. Unlock AI Briefing and Premium Content. Subscribe Now Already a member? Sign In.

Gold is the second-best hedge for investors against the backdrop of rising fiscal and geopolitical risks, according to Jefferies global head of equity strategy Christopher Wood. This person stated oil and energy stocks remain the preferred hedge as the economic and geopolitical pressure surrounding Iran continues to disrupt energy markets. Wood remarked the latest strategy appears to be based on hopes that economic pressure will force Tehran back to the negotiating table, but stated he would not bet on such an outcome. Tehran, he remarked, has every incentive to maintain the pressure until the US mid-term elections. It are now 11 weeks away.

While the cost gap between crude oil and refined products such as diesel has continued to widen, the Strait of Hormuz consequently remains essentially closed to most ships. Wood pointed to the Diesel Crack Spread. It measures the cost difference between diesel futures and WTI crude oil futures, rising above $100 a barrel for the first time ever on Monday.: Why Jefferies' Chris Wood, billionaire John Paulson say gold's long term bull market is just getting kicked off "This is why investors need to own oil and energy stocks as the best hedge, with gold second best, " Wood noted. Live Events.

Chris Wood's renewed call to purchase gold.

This is Wood's second bullish take on gold in quick succession. Last month, he remarked investors should once again commence accumulating gold and gold mining stocks after an extended pause. He draws a parallel with the dot-com bust, arguing that when the Nasdaq-led technology sector drove the market lower, the bear market had by late 2, 000 spread beyond technology to other sectors as it became clear that the unwinding of the dot-com boom would affect the broader economy. Wood believes a similar scenario could unfold if the AI capex boom implodes. It he notes would happen if credit matters come to the fore. This comes despite the broadening of the US equity market since the AI capex boom and the related growth in the wealth effect in the US stock market. It have been among the main drivers of US economic expansion over the past three years, along with straightforward fiscal policy. Any such collapse in capex spending would trigger an abrupt shift in US monetary policy expectations from tightening towards easing. For these reasons, Wood believes the time has come for investors to start accumulating gold and gold mining stocks again after an extended pause to refresh. Gold outlook.

In practice, the World Gold Council notes at current levels, gold costs are broadly aligned with a global backdrop of moderate expansion, cooling but still elevated inflation, and expectations of further, but limited, central bank tightening. Under these conditions, gold is projected to remain relatively rangebound, within a range of ±5%. Nevertheless, the stage could be set for a feasible breakout. On the upside, clear catalysts such as a worsening economy, a renewed geopolitical shock, a shift towards lower interest-rate expectations or a wave of dip buying could reignite gold's momentum and push rates back towards US$4, 500/oz or above. If the signals are solid, gold could move even higher.

For now, why Chris Wood sees gold as hedge amid war remains the part of the story worth watching, and further updates are likely as more details are confirmed.