Institutions: The frenzy for gold and other precious metals may trigger volatility in the stock and bond markets

According to Odaily, Bertram Lai from CGS International pointed out in a report that the continued rise of gold and other precious metals may lead to volatility in the stock and bond markets. He stated that gold and other precious metals appear to be in a self-reinforcing feedback loop, where their price movements themselves have become news driving further price changes. This could affect investors' perception of risks related to fiat currencies and may lead to an expansion of bond risk premiums at the long end of the yield curve. He added that if there is a substantial repricing of bond risk premiums in the coming months, it could trigger significant volatility in the stock and credit markets. (Golden Ten Data)