However, caution has since returned as Israel is continuing its attacks. Markets are watching to see whether the Iran pause becomes actual de-escalation or just a shorter fuse. “For the moment, it looks like most are just standing aside to see what happens, or doesn't happen, next," Chris Beauchamp, chief analyst at . “Precious metals’ weakness since the start of the Iran war shows how much of a crowded trade they have been before. Fearing a harsh central bank reaction and facing forced selling, traders are exhibiting herding behaviour,” Menke said. The absence of safe-haven seekers in the gold market is concerning but sound central bank buying is comforting. He remains constructive on gold and neutral on silver.

Meanwhile, Eirini Tsekeridou, responsible for fixed income research at Julius Baer is keeping his neutral stance on emerging market sovereigns and his overweight stance on emerging market corporate debt, with a credit quality and shorter duration tilt, given the uncertainty in central bank policy trajectory.