The yellow metal fell as much as 6.3% on Tuesday, suffering its worst drop in 12 years. The drop coincided with an even steeper 8.7% decline in spot silver prices.
The moves suggest investors are taking profits after gold and silver’s record-setting gains this year, and perhaps acting on Gross’s latest warning.
After cautioning investors in a Friday post on X to “wait awhile” if they wanted to buy gold, the Wall Street billionaire known as the “Bond King” told Business Insider in an email that gold was “exhibiting characteristics of meme and momentum stocks.”
Gross, who cofounded PIMCO and grew its flagship Total Return Fund to $270 billion over nearly three decades, meant that gold has soared in price partly because of hype and speculation, making it more volatile and vulnerable to a sudden, sharp decline.