Precious Metals: Gold

Although gold prices are at historical nominal highs, the decline in price-sensitive gold demand has led to weaker price momentum since mid-April.

While price momentum could remain relatively subdued in the short term, we expect demand to strengthen in the medium term thanks to a rebound in ETF demand and renewed Chinese physical demand.

In the short term, we see limited scope for a significant decline in demand and therefore we are adjusting upward our three-month projections to USD2,350 per troy ounce. Our 12-month projection is USD2,550.