"The gold market is walking a fine line"

RBC Capital markets on gold:

• After touching lows within striking distance of the $1200/oz level, gold has rebounded towards our price forecast of $1268/oz in Q3 2017, currently around $1245/oz (as of writing).
• While dollar weakness and falling US rates are primary drivers, on the other hand, ETF outflows have continued and US equity index levels continue to reach new highs.
• This points us to the fact that the gold market is walking a fine line, balancing a number of weakening macro headwinds and gold-positive uncertainty.
• Meanwhile, on the physical side, China and Hong Kong collectively have received the highest tonnage of total imports from Switzerland, (346 tons YTD) while India has received 290 tons in H1 2017 (note we don't necessarily think that India will continue to import at this clip on a seasonally adjusted basis).
• Low prices this year have kept consumer interest alive, and we look forward to consumer demand figures for Q2 17 for signs of life.