“We expect gold/silver to remain weak over the balance of the year
driven by our expectation of the Federal Open Market Committee
hiking rates in September despite recent action by China to weaken the
yuan,” RBC said in their recent report.
RBC expects an upward move in the yellow metal in case the Fed shifts its first rate hike to December.
Improvement in gold prices is also expected in the near term due to seasonal demand for India. The bank also awaits
"a further improvement in 2016 supported by fundamental demand
out of China/emerging-market countries as well as steady central-bank
buying.”
The lender has noted that it has reduced its long-term outlook on the gold price from $1,400 to $1,300 from 2018 onward, keeping in mind a combination of persistent U.S. dollar strength and weaker investment to limit the upside.