Analysts: The sentiment of "devaluation trading" in precious metals has not yet spread to larger markets such as the bond market.

Julius Baer research analyst Carsten Menke stated that the rise in precious metal prices is far more complex than simply a reflection of actual dollar depreciation. He pointed out that it reflects market concerns about Trump's domestic and international political maneuvering, essentially revolving around the potential depreciation risk of the dollar rather than its current weakness. While "depreciation trading" appears to be prevalent again in the precious metals market, this sentiment is virtually absent in other, larger markets, particularly the bond market. The amount of capital required to drive significant fluctuations in gold and silver is relatively limited, making prices easily amplified by sentiment and short-term fund flows. The institution maintains a bullish stance on gold but a neutral view on silver. (Jinshi)