American economist David Woo predicted that AI the eruption may erupt in the second half of 2026, a development that is believed to have significant implications finances markets, real yields, and gold prices.
Woo protested strongly money The combination of artificial intelligence and incentives for business investment has been a major force behind economic growth.
According to his analysis, the proliferation of AI-driven currencies has helped to keep real yields high, creating a difficult environment for gold and other non-yielding commodities, he said. he said in an interview with David Lin published on July 4.
The AI bubble prediction comes as investors continue to pour money into artificial intelligence, data centers, semiconductor companies, and related technologies.
“I worry that real yields will continue until the AI bubble bursts, and that’s when gold will get real support. In my opinion, the biggest problem for gold is AI. Until the AI bubble bursts, I think gold will continue to struggle. But my opinion is that there is a very good chance that the AI bubble will burst in the second half of the year.
AI is affecting the stock market
This sector has been one of the main drivers stock market has gained over the past year, helping fuel expectations for continued economic growth despite concerns about slowing growth earlier in the cycle.
He added that the US economy has been more stable than many expected, supported by stronger-than-expected data and continued business activity.
He added that part of this power comes from tax incentives that encourage spending on research and development, capital investment, and manufacturing.
Combined with increased interest in artificial intelligence and reduced policy uncertainty, this has boosted lending and investment, making AI-related investments a major source of economic growth.
The analyst said the AI stock bubble has kept real yields, heavy on gold prices in 2026.
Although gold has been making rallies from time to time, it is believed that the real yield remains a big hit as investors continue to favor AI-driven assets over traditional safe havens.
Woo said real yields could rise until the AI boom dies down, with an AI boom likely to provide support for gold prices.
