American economist David Woo predicts that an artificial intelligence bubble could burst during the second half of 2026, which he believes would significantly impact financial markets, real yields, and gold prices. According to Woo, AI-driven investment and business spending have become major forces supporting economic growth while keeping real yields elevated, creating headwinds for non-yielding assets like gold. He argues that once the bubble bursts, gold prices would likely receive support as investors shift away from AI-focused growth assets.
