RBC Sketch Out Short-Term Outlook For Bullion

RBC see “gold stuck in a range between high and base case scenarios as tailwinds from rate cuts this year and a weaker dollar are buffeted by a lack of investor flows into gold.”

• “In our latest Commodity Surveyor report we noted that while the only bright spot was precious metals prices, those prices are still not being backed up by underlying gold inflows.”
• “Additionally, while the directionality of the macro narrative is gold-positive, we do think that moments where the Fed shows reluctance will also hold gold back - for example, the latest Fed minutes indicated that it may be appropriate to stay restrictive “for some time.” That said, we are likely already at a peak rate and should cut in 2024, so we do think that there is now more upside flex than there was at the end of last year.”
• “Short term, the low end is likely around $1,950 and $2,100 on the high end.”