Small Allocation to Gold as a Hedge Makes Sense: JPMorgan’s Bell

The video discusses the role of gold as a hedge against inflation, highlighting its inverse correlation with US 10-year real treasury yields. It explores how fiscal stimulus, funded by quantitative easing (QE), can drive real yields down, supporting gold. However, if stimulus fails to generate inflation or if the economy improves significantly, real yields may rise, negatively impacting gold. The discussion also covers inflation expectations, noting that while inflation hasn't increased significantly, medium-term risks exist. The video concludes with a look at long-term economic policies and their potential effects on inflation and gold.

What is the relationship between US 10-year real treasury yields and gold according to the text?

What factors could lead to real yields going further into negative territory?

What challenges to gold are mentioned in the text?

What does the speaker believe about the likelihood of inflation in the near term?

What is the expected policy response to elevated unemployment levels as discussed in the text?