Everyone is talking about the tiering of AI valuations, but what’s being overlooked is that gold fell on the same day.
Spot gold fell 3.63% to $3,875.44, hitting a more-than-one-year low intraday. October was its worst month since 2008. At the same time, the 10-year Treasury yield fell 6 basis points and the 2-year yield fell 7. Tech stocks and gold were sold while bonds were bought. This doesn’t look like money moving from AI into cash-flow assets; it looks more like someone facing margin calls—the explanation given by Commerzbank.
It’s liquidity being sold, not a change of opinion.
If the old relationship of stocks falling while gold rises returns, or Apple and Palantir earnings pull money back into AI, this view is invalidated. The November 6 jobs report and expectations for a December rate hike will determine how quickly the recovery comes.
Spot gold fell 3.63% to $3,875.44, hitting a more-than-one-year low intraday. October was its worst month since 2008. At the same time, the 10-year Treasury yield fell 6 basis points and the 2-year yield fell 7. Tech stocks and gold were sold while bonds were bought. This doesn’t look like money moving from AI into cash-flow assets; it looks more like someone facing margin calls—the explanation given by Commerzbank.
It’s liquidity being sold, not a change of opinion.
If the old relationship of stocks falling while gold rises returns, or Apple and Palantir earnings pull money back into AI, this view is invalidated. The November 6 jobs report and expectations for a December rate hike will determine how quickly the recovery comes.
