Bill Gross, dubbed the "Bond King," has issued a warning, stating that gold has turned into a "momentum/meme asset" and advises potential buyers to "wait a while longer." He also pointed out that credit issues at regional banks could continue to affect the stock and bond markets, asserting that the yield on 10-year U.S. Treasuries is unlikely to drop below 4%.

On October 17, Gross expressed on social media platform X, “The ‘cockroaches’ of regional banks may keep affecting stocks and bonds.”

Recently disclosed loan fraud cases from two regional banks in the U.S. have sparked market panic. Zions Bank reported on Thursday that it has set aside $60 million in provisions and written off $50 million for two loans, which amounts to 5% of its expected earnings for 2025.

Court documents reveal 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: "When you see one cockroach, there are likely more."

Gross also mentioned on Friday that the U.S. economy is slowing down and expects growth to drop to around 1% soon. However, due to excessive supply of U.S. Treasuries and the governmental fiscal deficit issue, he believes the yield on 10-year U.S. Treasuries will not fall below 4%, projecting it to be closer to 4.5%.

On the same day Gross made his statements, gold continued to reach historic highs during Friday trading in Asia, with spot gold nearing $4,380. However, European stocks turned downwards during the session, and U.S. stocks hit a daily low. Following Gross's remarks, spot gold maintained a decline of over 2%, falling below $4,250.