Summary

• After reaching record highs earlier this year, prices have fallen sharply, leaving gold in negative territory for the year.
• While we remain constructive on gold over the medium term, the near-term environment has become more challenging.
• The primary driver behind gold’s recent decline has been a significant repricing of interest rate expectations.
• While the silver market is expected to remain in deficit, some of the strongest demand drivers are becoming less supportive.

By Ewa Manthey

After reaching record highs earlier this year, prices have fallen sharply, leaving gold in negative territory for the year. Rising Treasury yields, a stronger US dollar and weaker investor demand have weighed on the market, forcing investors