Summary

• Gold's recent weakness likely reflects higher real yields and positioning pressures, not a deterioration in its long-term investment case.
• Central bank buying remains a powerful structural support for gold demand and reserve diversification.
• Emerging markets (EM) gold producers’ fundamentals are improving, and we believe they could fare better than their developed market (DM) peers in this inflationary environment.

Gold has experienced an unusual period of weakness despite heightened geopolitical tensions and ongoing global uncertainty. While higher real yields and shifting investor positioning have weighed on prices in the near term, we believe the structural drivers