Gold softened again this week as higher bond yields and more hawkish central bank messaging put pressure on precious metals. In the report below, we look at what is driving the latest dip, where the market is finding technical support, and why long-term demand from investors and central banks still looks resilient even with near-term volatility.

“If you catch 100 red fire ants as well as 100 large black ants, and put them in a jar, at first, nothing will happen. However, if you violently shake the jar and dump them back on the ground the ants will fight until they eventually kill each other. The thing is, the red ants think the black ants are the enemy and vice versa, when in reality, the real enemy is the person who shook the jar.