Gold Rises As Traders Weigh Confusion Over US-Iran Talks

Summary

Axel Merk discusses gold's recent decline, attributing it to rising real yields and reduced leverage. He compares the current AI investment boom to the late 1990s, noting strong margins in precious metals versus uncertain AI margins. He advises investors to have a process and diversify.

• Gold is up 4% YTD but off highs due to rising real yields.
• Real yields moving higher are a headwind for gold.
• AI investments are real but margins uncertain; precious metals margins are good.
• Current environment resembles late 1990s with AI replacing dot-com.
• Equity financing by Alphabet is a positive sign versus debt.
• Investors should diversify and have a process.
• Geopolitical tensions and policy uncertainty add volatility.