Legendary investor Bill Gross says the recent surge in gold prices has gone too far, too fast. In a post on X (formerly Twitter) Friday, the Pimco cofounder said the metal has morphed into a “momentum/meme asset”, urging investors to “wait awhile” before buying in.

“Gold has become a momentum/meme asset. If you want to own it, wait,” Gross wrote.

Gold prices have soared more than 56% year-to-date, rising from $2,712 per ounce at the start of 2025 to a record $4,249 on Saturday, before slipping 2.1% Friday. The metal has now doubled since early 2024, fueled by inflation fears, budget deficits, and safe-haven demand.

“Too Much Supply, Too Many Deficits”

Gross also weighed in on the bond market, arguing that U.S. Treasury yields should be much higher given the government’s surging debt and slowing economy.

“The 10-year Treasury has no business below 4%, though 4.5% more like it — too much supply and deficits despite a slowing, soon-to-be 1% growth economy,” he wrote.

He expects yields to rise again after briefly falling below 4% this week as investors rushed into bonds amid renewed banking concerns.

Regional Bank ‘Cockroaches’ Return

Gross echoed JPMorgan CEO Jamie Dimon’s recent warnings about hidden risks in the banking system, pointing to disclosures from Zions Bancorporation (ZION) and Western Alliance Bancorp (WAL) regarding troubled borrowers.

“Regional bank ‘cockroaches’ may continue to affect stocks AND bonds,” Gross said, comparing the issues to the early signs that preceded the 2023 Silicon Valley Bank collapse.

While analysts do not see a systemic crisis, the renewed stress briefly sent stocks tumbling and 10-year yields dipping before recovering to around 4.01% by Friday’s close.

Gold Bulls Still See Room to Run

Gross’s warning contrasts with the bullish outlook from other market veterans:

  • Ed Yardeni, of Yardeni Research, recently said gold could reach $10,000 per ounce by 2030 if the current pace continues.
  • Ray Dalio of Bridgewater Associates remains a strong gold advocate, citing debt risks and geopolitical instability.
  • Capital Economics noted that “FOMO” — the fear of missing out — is now a clear driver of gold’s rally, even as real yields and the dollar remain firm.

Why It Matters

Gold’s surge has become a barometer for investor fear, reflecting anxiety over fiscal deficits, currency debasement, and the AI-driven equity boom. Gross’s caution signals a growing split between those betting on sustained inflation and those warning of market euphoria reminiscent of the 2021 crypto mania.

“If you want to own it, wait awhile,” Gross reiterated — suggesting that even the safest havens can turn speculative when sentiment overheats.

Bill Gross — once known as the Bond King — is calling time on gold’s breakneck rally. While he’s not denying its long-term value, he warns the current momentum looks more like mania than macro logic.

For investors chasing the shiny metal at record highs, Gross’s message is clear: step back, breathe, and wait for gravity to do its work.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.