Easing fears of a US regional banking crisis, the resolution of US debt-ceiling negotiations, better economic data, rising equity markets and hawkish Fed comments have all weighed on haven demand for Gold. Meanwhile, rising yields increased the opportunity cost of holding Gold, causing a liquidation in exchange traded funds (ETF) and futures.

While these factors are a short-term drag for the Gold price, we believe structural drivers – a pause in interest rates and fears of a US recession – are intact. We expect the Gold price to advance towards $2,100 by the end of this year.