Bill Gross warns on gold momentum as regional bank stocks tumble
Investing.com -- Legendary bond investor Bill Gross cautioned that gold has become a "momentum/meme asset" and advised potential buyers to "wait awhile" before purchasing the precious metal.
In a post on X, Gross also warned that "regional bank ’cockroaches’ may continue to affect stocks AND bonds," adding that the 10-year Treasury yield has "no business below 4%" and should be closer to 4.5% due to excessive supply and deficits despite an economy that is "slowing, soon-to-be 1% growth."
Gross’s comments came as gold prices reached a fresh all-time high near $4,390 an ounce on Friday before pulling back to $4,250. The precious metal was on track for a weekly gain of approximately 7% as investors sought safe-haven assets amid concerns about credit quality in the U.S. and rising tensions with China.
The banking sector faced significant pressure on Thursday when Zions Bancorporation (NASDAQ:ZION) shares fell 13% and Western Alliance Bancorporation (NYSE:WAL) tumbled 11% after Zions disclosed a $50 million charge-off related to defaulted commercial loans.