Analyst: De-escalation of US-Iran Tensions Could Trigger Larger-Scale Profit-Taking in Gold Market

BlockBeats News, February 5th - EFG International, the asset management arm of UBS Group, believes that there are currently various factors that could lead to further downside in the gold price. EFG's Chief Economist GianLuigi Mandruzzato pointed out that the intense volatility seen in the European gold market on January 29th, when gold briefly touched $5,600 per ounce, highlights the increasing risk of a pullback.

He stated that although currently a low probability, any de-escalation of the Iran situation could prompt investors to reassess their gold positions. Additionally, Mandruzzato added that the appointment of the new Federal Reserve Chair - someone seen as independent from Trump and credible on inflation issues - is expected to boost investor confidence in dollar assets, thereby reducing the demand for safe-haven assets. (FXStreet)