BIS Flags Dual Rally in Gold and Tech Stocks as Major Market Risk
In its last report for 2025, the called the simultaneous rise in both gold and technology stocks a significant market risk.
This is the first time in 50 years that , which is usually a haven, and tech, which is generally a speculative growth investment, are both rising in value. This could indicate deeper difficultys. If both plummet at the identical time, investors will have fewer secure options, making the world even more unstable.
Gold’s Change to a Speculative Asset
This year, gold has risen 60%, the best performance since 1979. AI-driven equities are driving the into what the BIS calls “explosive behaviour.”
Hyun Song Shin, the chairman of BIS’s monetary and economic department and its top economic countradeor, , “Gold has acted very diversely this year compared to how it usually does.” He also said that “gold has increasingly resembled a speculative asset.” “Where would investors go if both stocks and gold fell?” he asked.
Drivers for Retail and Central Banks
Gold’s rise is being driven by retail investors and ETFs, with funds trading above their net asset value due to what Shin “significant purchaseing pressure combined with barriers to arbitrage.”
Central banks begined things off by purchaseing a lot, but when prices rose, other investors got interested. Shin , “Whenever prices are going up, you will view other investors getting involved.” This wide range of participation raises the risk of overexuberance.
Investments in AI Are Being Looked At Closely
Shin compared the current situation to the dot-com bubble, but noted that are now making money. He questioned the massive expenditure on data centres, saying, “The main question is whether those investments will be viewn as worthwhile in the long run.”
The and the Bank of England have raised concerns about BTC’s 20% monthly decline and AI valuations that are too high. The economy has stayed strong, but the markets depend on it until 2026.
Dollar and Policy Watch
later than Trump’s April tariff pronouncements, the fell substantially but has since stabilised. Shin notes that “the dollar has been relatively stable” lately. He said, “I think the hedging actions of non-U.S. investors will be significant in how markets move from here.” BIS says to be careful as risk appetite drops.
