BlockBeats News, February 5 — UBS Group’s asset management arm EFG International believes that there are currently multiple factors that could lead to a further pullback in gold prices. EFG senior economist GianLuigi Mandruzzato pointed out that the sharp volatility observed on January 29, when gold briefly touched $5,600 per ounce in the European market, highlights increasing risks of a correction.
He stated that although the likelihood appears low at the moment, any easing of tensions related to Iran could prompt investors to reassess their gold holdings. Additionally, Mandruzzato added that the appointment of the new Federal Reserve Chair — who is seen as independent from Trump and credible on inflation issues — is expected to boost investor confidence in dollar assets, thereby reducing demand for safe-haven assets. (Jin10)
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Analyst: If tensions between the US and Iran ease, it could trigger a larger-scale profit-taking in the gold market.
BlockBeats News, February 5 — UBS Group’s asset management arm EFG International believes that there are currently multiple factors that could lead to a further pullback in gold prices. EFG senior economist GianLuigi Mandruzzato pointed out that the sharp volatility observed on January 29, when gold briefly touched $5,600 per ounce in the European market, highlights increasing risks of a correction.
He stated that although the likelihood appears low at the moment, any easing of tensions related to Iran could prompt investors to reassess their gold holdings. Additionally, Mandruzzato added that the appointment of the new Federal Reserve Chair — who is seen as independent from Trump and credible on inflation issues — is expected to boost investor confidence in dollar assets, thereby reducing demand for safe-haven assets. (Jin10)