The recent resurgence in the price of gold gave way to most of its gains during the early trading session on Tuesday as the market pulled back ahead of breaking the key resistance point.

The spot price of gold was down 0.6 percent ($1,346.60 an ounce) down from a peak price of $1,357.60, falling $1 short of a two-year high on June 24.

Castleon Rose, the Hong Kong based provider of asset management services and wealth solutions, maintained their belief that momentum halted as a temporary measure as investors took short-term profits, paving the way for a further run as investors begin to hedge on safe haven asset classes.

Chief Economic Analyst at Castleton Rose, Jason Adlington, presented his views to investors at the Hong Kong Economic Forum;

“Economic fundamentals remain strongly stacked towards a sustained period of gold price increases as investors begin to lose confidence in the stock markets, particularly in commercial and consumer driven sectors.”

“There was obvious upside momentum for gold prices in the wake of the Brexit referendum so a slight pullback in light of current market conditions is a justified reaction. However as equity values remain overpriced there are sufficient indicators that point towards a continued run as gold prices and gold related stocks capitalize on a shift of investor sentiment.”

“It is becoming more difficult to bring our clients equity opportunities that present attractive levels of value. In the main stocks are trading well above their weight in terms of what they can offer to investors over the long-term. However, we do see a lot of upside potential in gold related stocks that have utilized the past four years to streamline operational and balance sheet efficiencies. Combined with a favorable economic climate, there are a number of gold mining companies positioned to capitalize on an extended run of gold price momentum,” continued Castleton Rose’s Chief Economic Analyst.

Since results of the Brexit were confirmed, gold has advanced around 8 percent as stock market turbulence reacted to economic and political uncertainties. Year to date, gold prices have gained some 27 percent as fundamentals remain poised on pending policy decisions by global central banks, specifically those of the US Federal Reserve, which are most likely to influence the demand for gold and the metal’s related stocks.