Credit Agricole CIB Research maintains a bullish bias on Gold expressing this view via holding a long exposure in Gold Spot (XAU/USD) targeting a move towards $5240.

"Gold has emerged as one of the biggest victims from the USD's resurgence in 2026. The sell-off started at the onset of the war in Iran and the energy shock that followed. The surge in oil prices fuelled by demand for USD-liquidity meant that global central banks resorted to liquidating their gold reserves to satisfy their need for USD. More recently, the acceleration of the USD rally pushed XAU/USD to fresh lows," CACIB notes.

"Its latest underperformance notwithstanding, we believe that many negatives are already in the price of gold. To start with, central bank selling of gold reserves should slow down and could go into reverse in our view, if global energy prices continue to drift lower from here. In that, we believe that central banks outside of the US could continue to see XAU as a primary tool to reduce their exposure to the USD given the continuing attempts by the US to weaponise the currency. 

Furthermore, while market fears about fiscal dominance over the Fed have eased in the wake of the June FOMC meeting, we doubt that the concerns would disappear completely given that Trump could soon start his meddling into Fed policy before too long. To the extent that this results in lower US real rates, it could help XAU recover all over again," CACIB adds.