Christopher Louney, director of global commodity strategy at RBC, argues that the factors driving gold prices were never absent, merely paused. Despite a sluggish period for exchange-traded product holdings earlier this year, the return of geopolitical instability and persistent economic uncertainty has reaffirmed the metal's role as a primary asset. RBC’s analysis suggests that investors currently feel underexposed to gold, given the ongoing volatility surrounding tariffs, government policy, and international conflict.

Central banks remain the bedrock of this bullish outlook. Their continued, large-scale acquisitions provide a foundational narrative that encourages private investors to increase their own allocations. As gold continues to demonstrate low correlations with other asset classes, it is increasingly viewed as a necessary component of long-term investment strategies. Louney expects gold to trade primarily within the $4,500 to $5,000 range for the remainder of this year before moving toward the bank's higher-end scenarios in the coming years.