Swiss Bank Pictet Wealth Management currency strategist Luc Luyet has published a precious metals outlook. Since the beginning of March, the price of gold has continued to rise, reaching a new all-time high in US dollars. The potential strong demand from traditional gold buyers and the global futures market are factors supporting the rise in gold prices. The strong rise in gold prices over the weekend is somewhat related to the escalating tension in the Middle East. In the short term, Pictet Swiss Bank expects increased volatility in gold prices, but this may not necessarily lead to price hikes, as all parties around the world are calling for a de-escalation of tension in the Middle East (although how Israel responds will play a crucial role). In addition, gold may be affected by a decline in demand for gold jewelry and central banks, as well as high opportunity costs. Looking at the medium term, recent military actions by Israel and Iran in the past few days have crossed a "red line", indicating an escalation of structural tensions in the region. Overall, the increase in global geopolitical risks may support the safe-haven demand for gold. Pictet Swiss Bank remains optimistic about gold, but there is an upward risk in the current 12-month forecast above $2350 per ounce.