Global stock markets fall as concerns persist over tech firms at heart of AI boom

Global risk sentiment weakened on Monday as AI/tech valuations came under pressure and Middle East tensions lifted oil, a backdrop that is modestly supportive for safe-haven metals even though gold and silver were not directly discussed. Brent jumped nearly 5% to $97.60/bbl after Iran and Israel exchanged fire, while Asian and European equities sold off sharply, with South Korea’s Kospi down almost 9% intraday and Europe’s Stoxx 600 off about 0.9%. The article centers on growing investor concern that AI leaders will need to fund “eye-watering” capex plans just as markets price in a higher chance of a Fed rate rise this year. Commentators cited a shift from easy AI enthusiasm toward stricter scrutiny of earnings delivery, monetisation and capex discipline. At the same time, renewed conflict raised the risk of disruption to the Strait of Hormuz, which carries roughly a fifth of global oil and gas flows. For precious metals, the near-term read-through is mixed but slightly bullish: higher geopolitical risk and firmer energy prices can lift inflation expectations and safe-haven demand, though rising Fed-rate expectations remain a headwind via real yields and the dollar. Watch whether the oil spike persists and whether equities continue to de-risk, as those two channels would be the main indirect support for XAU/XAG in the next 24-72 hours.