FXStreet notes that pricing pressure remains intense. Combined with a slightly weaker USD and amid a stabilization in the growth dynamic, strategists at ANZ Bank maintain gold short-term price target at $1,900.

“Our gold valuation model still suggests gold is undervalued. The rally in bonds and recent strength in the USD has seen investors demand for gold wane. However, the undervaluation of around $150 has been driven by expectations that the spike in inflation will be transitory.”

“If inflation expectations start to drift, the gold price could push higher. If the 30y breakeven rate were to rise 10-15 basis points from the current level of 2.25%, we would see gold’s valuation push up to nearly $2,000.”

“We still expect the gold price to inch higher. As such, we maintain our short-term price target of $1,900."