Gold stabilised between $2,433 to $2,280 range since mid-April – London Business News | Londonlovesbusiness.com

Gold has chopped around in a $2433 to $2280 range since mid-April, and I continue to like this range holding until we see clarity on its investment case.

The good news for the bulls is that price holds in despite equities at all-time highs, low volatility across markets and little need (for now) to add gold weightings in the portfolio against real economic fragility.

Conversely, with the PBoC easing back on further increasing its allocation of gold within its reserves, markets becoming more comfortable with the news flow in geopolitics, and US real rates and the USD essentially range bound – the need to chase any upside is limited too.

Subsequently, the market needs to see a compelling reason for turning overweight or the risk is we hold this range in the short-term.

Taking a medium-term view though, I do see a real risk of greater upside potential (than downside) and with the Fed likely to keep rates on hold until after the election, amid a higher for longer rates setting, once we do see a labour markets really cooling across all measures and evidence of a slowdown underway then gold should make new highs, and gold will offer clear attractions within the portfolio.