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Analyst: Investors may withdraw from government bonds, leading to higher gold prices.
Gold edged higher in early Asian trading on May 22 as investors may shift from Treasury bonds to precious metals. Fawad Razaqzada, a market analyst at City Index and FOREX.com, said that global bond markets are swinging and traditional safe-haven assets such as gold are regaining their place. Concerns about the U.S. fiscal outlook are also growing. All else being equal, this should mean that there will be a higher demand for safe-haven assets.