It is above all the ETF investors, who had only just begun returning tentatively to the market, that are now already on the retreat again. Gold ETFs have seen increasing outflows since the end of May. 

The prospect of higher US interest rates and a reversal of the Fed’s policy likely to be pushed further into the future have dampened interest in Gold as a non-interest-bearing investment. 

Against this backdrop, Gold could again dip below the $1,900 mark in the short term. Gold should regain ground as soon as a turnaround in interest rate policy is on the cards, however.