Bond King Bill Gross Says Gold Has Now Become A 'Momentum/Meme Asset:' 'If You Want To Own It...'

Gold Market Insights - Legendary bond investor Bill Gross has advised caution regarding gold investments, suggesting that the recent surge in gold prices may be overextended, with prices having doubled since early 2024 and increased by more than 56% year-to-date, rising from $2,712 to $4,249 per troy ounce [1][2] - Gross indicated that gold has become a momentum/meme asset and recommended waiting before investing in it [2] Economic Concerns - Gross expressed concerns over budget deficits and a slowing economy, highlighting Wall Street's unease about potential issues in banks' loan portfolios, particularly following disclosures from Zions Bancorporation and Western Alliance Bancorp about troubled borrowers [3] - He referenced JPMorgan CEO Jamie Dimon's warning about the collapse of auto lender Tricolor, describing it as a "cockroach" that signifies more hidden problems in the banking sector [4] Impact on Bonds and Stocks - Gross predicted that regional bank issues might continue to affect both stocks and bonds, asserting that the 10-year Treasury yield should not be below 4%, with a more appropriate level being around 4.5% due to excessive supply and deficits in a slowing economy [4] - Despite analysts not seeing systemic problems, the market reacted negatively to memories of the Silicon Valley Bank collapse, causing a brief dip in the 10-year Treasury yield below 4% [5] - Gross believes this market reaction was exaggerated and anticipates that yields will rise significantly above the recent close of approximately 4.01% due to the federal government's need to issue more debt amid slowing growth [5]