Analysts: Amidst heightened tensions in the Middle East, increased risk aversion is the only factor driving gold prices higher.

According to Odaily Odaily, Carsten Menker, head of research at Julius Baer, ​​stated that gold can only truly shine if there is a stronger sense of risk aversion in financial markets amidst the tense situation in the Middle East. He pointed out that the reason gold prices are affected by the rebound of the US dollar and the rise in US bond yields is because the previous sharp rise was largely based on expectations of dollar depreciation. He added that those who bet on gold prices rising due to dollar depreciation have been in the wrong trading position since the start of the war. Julius Baer maintains his established view of being optimistic about gold and neutral on silver. (Jinshi)