Bond market veteran Bill Gross compared gold, whose prices have recently skyrocketed, to a “meme asset” that should be avoided for now. He recommended investors to wait for a while before opting for the precious metal.<\/p>\n
The Pimco cofounder’s warning came on Friday, on a day when gold dipped by 2% after hitting a record high of $4,300 an ounce in the US spot market.<\/p>\n
“Gold has become a momentum\/meme asset. If you want to own it, wait awhile,” he posted on social media platform X.<\/p>\n
Gross’ view comes in the backdrop of analysts linking gold’s recent surge to an expectation that several governments across the globe will let inflation run hot to ease debt burdens.<\/p>\n
This rally is considered a part of a debasement trade, as investors flee traditional currencies like the dollar over concerns about soaring debt in the US and other developed nations.<\/p>\n
The fears of systemic risks emerged on Thursday, after JPMorgan CEO Jamie Dimon described the collapse of auto lender Tricolor as a \u201ccockroach\u201d \u2014 signalling that more alleged dodgy borrowers could be in the hiding.<\/p>\n
This had briefly led to the 10-year Treasury yield slipping below 4%. Dwindling yields often lead to a surge in the price of gold.<\/p>\n
Gross, however, believes the concern of Treasury yields is unsubstantiated. “Regional bank ‘cockroaches may continue to affect stocks AND bonds. 10 year Treasury has no business below 4% though 4.5% more like it \u2014 too much supply\/deficits despite slowing, soon-to-be 1% growth economy (sic),” he said, while recommending investors to wait before buying gold.<\/p>\n","protected":false},"excerpt":{"rendered":"Bond market veteran Bill Gross compared gold, whose prices have recently skyrocketed, to a “meme asset” that should…\n","protected":false},"author":3,"featured_media":318338,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,135,67,132,68],"class_list":{"0":"post-318337","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115406069048075744","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/318337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=318337"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/318337\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/318338"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=318337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=318337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=318337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}