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00:00What needs to happen for gold to go down . That's a great question and a lot of the focus has been on the upside risks. But one of the big factors that's playing out in the markets at the moment is that although investment demand is very strong the physical market is very weak. So we continue to see strong allocation into the gold backed ETF in terms of retail gold demand. But the physical markets and key markets here are India and China have seen their demand plummet and particularly driven by the Jihye Lee sector. So if we start to see a little bit of slowdown in terms of investment demand protect its economy start to reopen it could see that downside risk becoming more material . Suki what's your take on inflation. So you know gold is also linked to inflation and dollar. Some are saying that in 18 months this is going to be the big surprise that will suddenly saw a surge in inflation. In terms of the inflation and deflation tug of war we think there's a greater risk of deflation in the near term rather than inflation. Yes an inflation environment would be positive for gold. But as we saw after the global financial crisis and the huge fiscal stimulus at the time quantitative easing didn't lead to incite inflation risk. The number of factors behind this partially technological factors. But at the moment our base case scenario is that there's a greater chance of deflation rather than inflation particularly as we see we're likely to see a decline in corporate profits and the slow and underwhelming economic recovery that we're expecting in the second half of the year which wouldn't necessarily create a positive backdrop for gold . But of course the real trigger will be whether we continue to see negative real yields and that has stopped. And if we do continue to see negative real yields then that does create a supportive backdrop for gold . So the understanding is the central banks will keep buying gold . I'm fascinated by this question. And it's not like a James Bond movie when central banks buy gold bars of gold. Who do they buy from . Much of the time they're buying it from the open markets. And so there's been a number of factors driving interest in buying gold in the official sector level. I'm asking myself in 2018 2019 the amount of purchases were the highest in 51 years . This year we do expect that buying to slow down. But we do think central banks will remain net bias. And the latest survey conducted by the local council shows that that desire remains intact as well .

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What Are the Downside Risks to Gold?

Suki Cooper, precious metals analyst at Standard Chartered Bank, explores the factors supporting gold prices, and where she sees downside risks to commodity. She speaks on "Bloomberg Surveillance." (Source: Bloomberg)

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