we think near-term pressure on gold is understandable

this consolidation as an opportunity to gradually build a strategic position in gold

but for now, the extent of the dovish shift in Fed expectations has made gold vulnerable to improvement in the data during a time when physical markets tend to be quieter.

physical demand out of China has been weak this year

interest out of India has been resilient

Central bank activity has been another source of support for gold - strong net buying from 2018 has extended into this year