Positive case for gold remains intact

Most commodity prices have moved in narrow ranges in the past week. US natural gas prices continued their see-saw pattern, buffeted by weather and other seasonal factors. But other markets were largely quiet. Encouragingly, the price of gold held steady despite further signs of economic recovery in the US (in the form of stronger retail sales in May). This supports our view that precious metals can still rally later in the year, as the first Fed rate hikes are now largely priced in.