Analyst: Gold Can Only Rise When Risk Aversion Intensifies Amid Middle East Tensions

Odaily News Carsten Menke, Head of Research at Julius Baer, stated that for gold to truly shine amid the tense situation in the Middle East, more pronounced risk aversion needs to emerge in the financial markets. He pointed out that the reason gold prices are being impacted by the rebound of the US dollar and rising US bond yields is that the previous significant rally was largely based on expectations of a weaker dollar. He added that those betting on gold prices to rise due to a weaker dollar have been on the wrong side of the trade since the war began. Julius Baer maintains its established view of being bullish on gold and neutral on silver. (Jin10)