Gold as a Hedge Gains Strength as BofA Warns of AI Bubble Risk

Gold as a Hedge Rises Amid AI Bubble Fears, Early BTC Bull Run Signal

Is gold becoming the safest place to hide as the AI hype gets bigger? This question is gaining attention after Bank of America strategist Michael Hartnett said that gold may be the ideal hedge against an AI bubble. 

Source: X (formerly Twitter) 

His warning arrived at a time when tech stocks are struggling, gold is breaking out, and Bitcoin is showing a familiar bullish signal from the Copper/Gold RSI ratio.

Together, these trends are pushing investors to rethink risk and look more closely at this conventional asset as a Hedge in the coming months.

Tech Stocks Fall Sharply as AI Bubble Fears Grow

The last month has been rough for major technology companies linked to the AI boom:

• Nvidia: –10.33%

• Microsoft: –10.44%

These drops are happening while more economists warn that AI stock prices may be rising faster than the companies can deliver real profits.

The World Economic Forum highlighted a rising surge of “AI bubble” discussion across global markets comparing today's hype with the dot-com mania of the early 2000s. 
Even the Bank of England warned that a sudden correction in AI-related stocks could have a “material impact” on the financial system. 

Gold Price Breaks Out on the Chart

Latest Barchart data shows the metal breaking out from a falling wedge, a bullish pattern that often appears before a sharp upward move. Silver has also hit a new all-time high, adding more strength to the metals rally.

Source: Barchart 

At the same time, the Nasdaq ($QQQ) is on track for its worst November since 2011, showing how differently the physical asset and tech are behaving.

Copper/Gold Ratio RSI: A BTC Bull Signal Appears Again

The most interesting chart this week comes from the Bitcoin analyst who studied the RSI of the ratio.

The chart shows a clear pattern:

Source: X (formerly Twitter) 

Every time the Copper/XAUUSD RSI hits the low zone and bounces, BTC enters a bull market.

• It happened in 2015 → Bitcoin surged.

• It happened again in 2019 → Bitcoin surged.

• It happened in 2020–2021 → Bitcoin surged to new highs.

Now in 2025, the RSI is once again bouncing from the same low zone.

The chart highlights this moment as the beginning of another possible BTC bull run.

This pattern matters because this ratio reflects global economic strength. Copper rises in growth phases, while metal asset rises in fear phases. When their ratio reaches an extreme low and reverses, it often marks a shift in liquidity and risk appetite.

This is why the current bounce is important not only for BTC but for yellow metal asset as well. Both assets tend to rise when money flows away from overvalued tech stocks.

Central Banks Continue Buying the Yellow Metal Asset

According to the Kobeissie Letter Report, Central banks are not slowing down:

• 220 tonnes bought in Q3 2025 (+10% YoY)

• 634 tonnes bought so far in 2025

• Kazakhstan and Brazil led the buying

Source: X (formerly Twitter) 

This shows strong long-term trust in real physical asset, supporting the argument for it as a Hedge when markets become unstable.

Kiyosaki: “A Crash Is Coming: That’s Why I Buy Gold and Bitcoin”

Robert Kiyosaki shared bold price predictions:

• XAUUSD: $27,000

• BTC: $250,000

• Silver: $100

• Ethereum: $60

He says governments are printing too much money and breaking economic laws, so real assets will benefit over time.

Final Outlook

With AI stocks cooling off, gold breaking out, and Bitcoin flashing a bullish RSI signal, the market mood is shifting. More investors are starting to treat Gold as a Hedge against both inflation and a possible AI-driven market bubble.

The metal asset is acting like stability. Bitcoin is showing early strength.
And tech may be entering a period of doubt.

The next few months could decide whether this AI boom turns into a bubble or these assets become the biggest winners.
Disclaimer: This article is for informational purposes only and not a financial advice, kindly do your own research before investing.