The Bank for International Settlements (BIS) has warned that the combination of gold and share prices soaring together has not been seen in at least half a century and raises questions of a potential bubble in both. “The past few quarters represent the only time in at least the last 50 years in which gold and equities have entered this territory simultaneously,” the BIS said its latest quarterly review. “Following its explosive phase, a bubble typically bursts with a sharp and swift correction.” The BIS also gave a broader warning about the “growing fragility” of the risk-on environment amid concerns about artificial intelligence valuations and the recent 20% plunges in cryptocurrencies.
