"Bond King" Gross: Gold has become a meme asset, the impact of the regional bank crisis will continue

"Bond King" Bill Gross has issued a warning, stating that gold has become a "momentum/meme asset" and advising potential buyers to "wait a little longer." He also pointed out that the credit issues of regional banks may continue to affect the stock and bond markets, and believes that the yield on the 10-year U.S. Treasury bond is unlikely to fall below 4%.

On October 17, according to media reports, Gross warned in a post on social media platform X,

"The 'cockroaches' of regional banks may continue to affect stocks and bonds."

Recently, loan fraud cases disclosed by two U.S. regional banks have triggered market panic. Zions disclosed on Thursday that it set aside $60 million in provisions and wrote off $50 million for two loans, a loss equivalent to 5% of its expected earnings for 2025.

Court documents show that this is the third suspected fraud case exposed within a month and a half, following First Brands and Tricolor, confirming JPMorgan CEO Jamie Dimon's recent warning. Dimon said, "When you see one cockroach, there may be more."

Gross also stated on Friday that the U.S. economy is slowing down and will soon see growth fall back to 1%, but due to the oversupply of U.S. Treasuries and the government's fiscal deficit issues, the yield on the 10-year U.S. Treasury bond will not fall below 4% and should be close to 4.5%.

On the day Gross made his remarks, during Friday's Asian market session, gold continued to reach historic highs, with spot gold approaching $4,380. However, European stocks turned lower during the session, and U.S. stocks hit a new daily low in early trading. After Gross's speech, spot gold maintained a decline of over 2%, trading below $4,250.