Famed bond investor Bill Gross is advising investors to hold off on buying gold, saying the metal has started to behave more like a “momentum” or “meme” asset than a traditional safe haven.
In a post on X, Gross also warned that problems among U.S. regional banks, which he called “cockroaches”, could continue to weigh on both stock and bond markets. He added that the yield on 10-year U.S. Treasury bonds should not be below 4%, arguing that heavy government deficits and bond supply justify a level closer to 4.5%, even though the economy is slowing and may soon see growth near 1%.
Gross’s warning came as gold prices briefly hit a new all-time high of about $4,390 an ounce on Friday before easing to around $4,250. The metal is still up roughly 7% for the week, driven by investor demand for safer assets amid worries about U.S. credit quality and growing tensions with China.
The pressure on regional banks has added to these fears. Shares of Zions Bancorporation dropped 13% and Western Alliance Bancorporation fell 11% on Thursday after Zions revealed a $50 million charge-off tied to bad commercial loans, reigniting concerns about the health of smaller lenders.
