Near-term bearish, long-term bullish

ROBUST risk appetites have imposed heavy downward pressure on the precious metal since Feb 19. Dovish signals from US Fed policy makers along with Chinese economic stimulus bolstered global equities as investors anticipate rosy economic conditions. Signs of progress in US-China trade negotiations have further buoyed market optimism as both parties seek closure with a trade pact.

Bullion appeal as such has weakened significantly amid competing influences from interest-yielding assets. A resilient US dollar along with bullish conditions in stock markets have capped upside gains whilst raising downside risks for gold prices in Q2 2019.

What should investors look out for in the longer term?