Bank of America Global Research discusses Gold outlook.

'Our model confirms that current investor buying is more consistent with a price closer to US$4,000/oz than US$5,000/oz, which is associated with investment demand growth of 21% YoY. Hence, investor purchases must accelerate for gold to push towards US$5,000/oz. Central bank purchases already provide a supportive backdrop, rising to 51t in June, well above the 12‑month average of 27t. However, a sustained move higher in gold would also require a recovery in ETF inflows," BofA notes.

"Gold tends to benefit when policy signals become harder to interpret. The upcoming US PCE report on 26th August, the 27th-29th August Jackson Hole gathering and the 16th September FOMC meeting are the next key events. A dovish tilt would be bullish for gold," BofA adds.