FXStreet reports that strategists at Capital Economics don’t expect the price of gold to fall much further this year.

“We doubt that the recent rise in US real yields will continue, and we wouldn’t be surprised if they even edged back down a little. If we are correct, then the recent slump in investment demand should subside before long, helping to remove much of the downward pressure on gold.”

“We still expect the recovery in physical demand for gold to continue. A strong economic recovery in India and a revival in demand in China should act as a floor for the gold price.”

“We don’t think that the price of gold will drop too much further from here. We forecast it will end the year close to $1600 per ounce.”