Analysts: The "Devaluation Trade" Sentiment in Precious Metals Has Not Yet Spread to Larger Markets Such as the Bond Market

According to Julius Baer research analyst Carsten Menke, the rise in precious metal prices is far more complex than just a real depreciation of the US dollar. He pointed out that it reflects market concerns about Trump's political maneuvers both domestically and internationally, essentially revolving around the potential risk of a US dollar devaluation rather than its current weakness. Although the "devaluation trade" seems to be gaining momentum again in the precious metals market, this sentiment shows almost no signs in other larger markets, particularly the bond market. The capital required to drive significant volatility in gold and silver is relatively limited, making prices susceptible to amplification by sentiment and short-term capital flows. The institution maintains a bullish stance on gold but holds a neutral view on silver. (Jin10)