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Gold’s brutal stretch has rattled even seasoned bulls, but Suki Cooper, Global Head of Commodities Research at Standard Chartered Bank, is telling investors not to confuse a liquidity flush with a broken thesis. In a recent CNBC segment, Cooper argued that the forces that drove gold to record highs, including central bank buying and long-term concerns over government debt and fiat currencies, remain firmly in place despite the recent pullback.
She believes gold will eventually return to “above $4500” per ounce.
Why Cooper Says the Gold Selloff Is Temporary
Cooper’s core message is that the recent drawdown across precious metals reflects “a liquidity event, profit-taking event,” rather than a “thesis-changing event.” When investors need cash, they sell what is liquid and what has worked. Gold and silver fit both descriptions after a historic run.
That framing matches what the broader commodity complex has done. West Texas Intermediate crude has slid from 99.76 on June 3 to 78.94 on June 22, a sharp pullback that supports the view of a broader unwind rather than a precious-metals-specific story. The market’s volatility tells a similar story, with the VIX touching 31.05 on March 27, 2026, before normalizing to 17.65 as of late June. This spike, followed by a gradual normalization, is consistent with a market digesting a liquidity shock rather than pricing in a lasting structural change.
Central Banks Are Still Buying Gold
Cooper points to the official sector as the single biggest structural driver behind gold’s multi-year bid. According to Standard Chartered, Q1 central bank buying was the strongest since Q4 2024. Sovereigns are accumulating bullion as a reserve diversification, and demand holds firm even after a 200-day moving average break.
Beyond the official sector, Cooper expects the drivers that pulled private investors into gold to reassert themselves once liquidity needs ease. Mainly, she expects concerns about fiat currency debasement, rising U.S. and global debt levels, and the need for portfolio diversification to continue supporting demand for gold.
The macro backdrop reinforces that view. U.S. CPI hit 333.979 in May 2026, the high end of the trailing 12-month range, while M2 money supply expanded from $21.94T in June 2025 to $23.05T in May 2026.
The Short-Term Risks Pressuring Gold
Cooper acknowledges gold’s cyclical pressure and flagged three specific risks that explain the metal’s selloff:
- Seasonal demand weakness from India, traditionally one of the largest physical gold buyers, is weighing on the spot market.
- Gold recently breached its 200-day moving average and is approaching the psychological 4000-per-ounce level, technical conditions that can invite further momentum selling.
- Rate expectations have whipsawed, with the market swinging from pricing rate cuts at the start of the year to pricing potential rate hikes, eroding one of gold’s tailwinds.
The rate story shows up in policy data. The Fed funds rate sits at 3.75%, where it has remained since the December 11, 2025 cut, while the 10-year Treasury yield is at 4.38% as of June 26, 2026. A pause in the easing cycle raises the opportunity cost of holding a non-yielding asset.
Silver and Platinum Got Hit Even Harder
The pain has been even more acute further down the precious metals stack. Cooper noted that, per the segment, silver posted its worst quarter since 2013 and platinum its worst since 2020. Both metals carry exposure to industrial demand in addition to monetary characteristics, which amplifies their beta in a deleveraging market.
What to Watch Next
Cooper’s argument comes down to one distinction: short-term selling pressure does not necessarily mean the long-term gold thesis is broken. In her view, central bank demand, debt concerns, fiat-currency worries, and portfolio diversification needs still support the case for gold moving back above $4,500.
The key signals now are whether central banks continue buying, whether Indian demand improves after seasonal weakness, whether gold holds near the $4,000 level, and whether interest rates are expected to decline. The structural story remains intact in Cooper’s view, but the near-term path is still messy.
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