On July 17, some institutions believe the price of gold may see further declines, but its medium to long-term allocation value remains intact. The market is awaiting a more suitable entry zone, with the current short-term correction drawing attention to strategies of phased accumulation.
Distinguishing between a weakening trend and a valuation correction is crucial for gold's pullback. If real interest rates continue to climb, gold prices could face sustained pressure; conversely, if macroeconomic uncertainties intensify, the correction zone may attract long-term capital.
Current gold prices are influenced by a combination of the US dollar, yields, and capital flows. Investors are not merely observing price declines but also comparing factors like central bank demand, ETF holdings, and changes in real interest rates. Should these indicators stabilize, the correction could be viewed as a window to reassess allocations. Simultaneously, a phased accumulation approach must be grounded in risk tolerance and capital deployment timing. If gold prices continue to retreat, long-term funds may gradually monitor support levels; a rapid rise in yields would necessitate continued caution regarding entry timing.
Consequently, the correction phase demands closer observation of whether capital is genuinely willing to re-enter the market, alongside considerations of position timing. Subsequent focus should be on key support levels, real interest rates, and precious metals capital flows. If capital provides support at lower levels, gold prices may stabilize; however, should yields continue their upward trajectory, the adjustment period could be prolonged.
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