American economist and investment strategist David Wu predicted that… Amnesty International The bubble could burst during the second half of 2026, a development that he believes will have major implications for it financial Markets, real yields and gold prices.
Wu said that powerful investment Associated with artificial intelligence and incentives for business spending, it has become a major force supporting economic growth.
According to his assessment, the boom in AI-based investing has helped keep real yields high, creating a challenging environment for gold and other non-yielding assets. He said In an interview with David Lean published on July 4.
The AI bubble prediction comes as investors continue to pour capital into AI infrastructure, data centers, semiconductor companies, and related technologies.
“I fear that real yields will continue to rise until the AI bubble bursts, and then gold will get real help,” Wu said. “In my view, the biggest problem that gold faces is AI. Until the AI bubble bursts, I think gold will continue to struggle. But my view is that there is a very good chance that the AI bubble will burst in the second half of the year.”
The impact of artificial intelligence on the stock market
This sector has been one of the biggest drivers stock market gains over the past year, helping to bolster expectations of continued economic expansion despite concerns about slowing growth earlier in the cycle.
He pointed out that the US economy remained more resilient than many expected, supported by stronger-than-expected data and continued investment in businesses.
He attributed part of this strength to tax incentives that encouraged spending on research and development, capital expenditures, and manufacturing projects.
Combined with growing enthusiasm for AI and easing policy uncertainty, these factors have fueled employment and investment, making AI-related capital spending a key driver of economic growth.
The strategist argued that the AI equity bubble kept real yields high, weighing on gold prices throughout 2026.
While gold has seen cyclical rises, higher real yields are believed to remain a major headwind as investors continue to favor AI-based growth assets over traditional safe havens.
Real yields could continue to rise until the AI boom loses momentum, and the potential bursting of the AI bubble is likely to provide support to gold prices, Wu said.
