Saad Ullah
● In a statement shared by Barchart, Bill Gross—the famous "Bond King"—said gold has likely peaked, marking a potential end to its recent surge. Gross, who dominated fixed-income markets for decades, thinks gold's run to above $2,500 per ounce may be over as economic conditions change.
● His view suggests gold could face selling pressure as real yields climb and investors shift toward bonds and stocks offering better returns. The concern is that gold's rally has disconnected from fundamentals, making it ripe for a correction. If this happens, investors who relied on gold as protection against inflation and geopolitical turmoil could see losses. Rising yields might pull money out of gold and into bonds, triggering portfolio shifts and short-term volatility in commodities.
● A gold pullback could ease inflation on consumer goods and help central banks worried about commodity price distortions. But it would hurt gold miners, ETFs, and commodity funds that profited during the rally. Gross favors bonds instead, arguing that higher yields make them more attractive than non-yielding assets like gold. Investors following his thinking may move toward bonds or dividend stocks as safer bets when rates are rising.
● His comments echo wider market skepticism about gold's sustainability at current levels. Analysts note weakening demand from major buyers like China's central bank, while a stronger dollar and cooling inflation have undercut gold's usual supports. "Gold has topped," the Barchart letter stated, capturing Gross's belief that the metal's momentum has likely run its course for now.
Saad Ullah
