Gold price momentum slowed recently as the UST 10y bond yield inched higher. 

The Fed didn’t raise rates in the latest meeting, which led the USD to fall below 103. However, Gold did not find much support as the prospect of the Fed remaining hawkish has increased.

Investors have been liquidating gold ETF holdings in June. Tactical long positions have dropped too. Nevertheless, the risk of a US recession has increased, with the yield curve inverting to a multi-year low. Such risk should lead funds back into Gold. 

While Gold’s physical premium suggests subdued demand, imports in India and China are holding up well. China’s jewellery sales have slowed but continue to grow.