Rising real rates and strong US dollar are crimping investment demand for gold. Strategists at ANZ Bank expect the yellow metal to hover around $1,620 by the end of the year.

Macroeconomic backdrop for gold remains challenging

“In the short-term, a combination of rising yields and strong USD will tarnish investment demand for gold.”

“With the US Fed continuing on its aggressive tightening path, we expect more outflows from gold ETFs, and further price downside to $1,620 by the end of the year.”