A ‘Goldilocks’ scenario or ideal balance in the US macroeconomic landscape will be a short-term drag for the Gold market. The Fed continues to hold its hawkish stance alongside easing inflation, leaving risk for higher real rates. Renewed strength in the US Dollar is another headwind.

That said, we believe the Fed is near the end of its hiking cycle, the USD remains in a structural downtrend and tightening credit conditions could be an economic risk. These present a supportive backdrop for Gold.