Cathie Wood issues warning: Gold prices are more likely to fall, the bubble is not in AI but in the gold sector

According to Odaily, renowned investor Cathie Wood posted on X, stating that the likelihood of a decline in gold prices is high. During today's session, the ratio of gold's market capitalization to the U.S. money supply (M2) reached a historic high, surpassing the peak in 1980, when both inflation and interest rates rose to around 15%.

Additionally, she commented: "While parabolic rises often push asset prices to levels most investors never expect, such astonishing surges typically occur at the end of a cycle. In our view, the current bubble is not in the artificial intelligence sector, but rather in gold. A strengthening U.S. dollar could burst this bubble just as it did from 1980 to 2000, when gold prices fell by more than 60%."