Gold and Precious Metals Surge May Impact Stock and Bond Markets

Bertram Lai from CGS International has highlighted in a report that the ongoing rise in gold and other precious metals could lead to volatility in stock and bond markets. According to Odaily, Lai noted that gold and other precious metals appear to be in a self-reinforcing feedback loop, where their price movements have become news driving further price changes. This situation may affect investors' perception of risks associated with fiat currencies and could potentially widen the bond risk premium at the long end of the yield curve. He further stated that a significant repricing of bond risk premiums in the coming months could trigger substantial fluctuations in stock and credit markets.