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“I think the underlying, fundamental, positive reasons for gold haven’t gone away,” Tom Fitzpatrick, a Citigroup Inc. technical strategist, said by phone. “Once the momentum in this lags, we’ll probably consolidate for a while, but we still think we might find ourselves back up at $2,400 by the end of the year.”

“Today real rates clearly moved higher and that’s clearly what moved gold lower,” Michael Widmer, head of metals research at Bank of America Merrill Lynch, said by phone from London. “You had stronger PPI data out and I think when that data came out the market had another look at rates and expectations.”
BofA’s Widmer says the gold rally has only hit a pause, and reiterated the bank’s $3,000 an ounce 18-month target.
“Financial repression is not gone and I think dollar debasement is not gone either,” Widmer said. “Implicitly and explicitly, central banks are backstopping governments at the moment, and I think that’s really the bullish firmness behind that $3,000 per ounce call.”