Just published, Gold Market Commentary for the month of by World Gold Council said, Gold rose for the third consecutive month in May albeit modestly, with COMEX net positioning hitting a four-year high and gold ETF net outflows far lower than in April.
Gold posted a third consecutive monthly gain in May, rising by 2% m/m to US$2,348/oz. Despite the more moderate gain compared to March and April, gold hit a new all-time high of US$2,427/oz mid-month before pulling back –likely reflecting some profit taking.
But market activity remained supportive during the month, with net long managed money positions on COMEX hitting a four-year high and gold ETFs seeing net inflows (US$529mn) for the first time since May 2023.
Looking at our Gold Return Attribution Model (GRAM), there was no single variable that stood out as a key driver in May.
Momentum and a weaker US dollar were positive drivers but their impact was marginal. And while the unexplained component of the model shrank considerably in May, it was still the largest factor by far. As we have noted previously, WGC believe some of this can be attributed to strong over-the-counter buying, including central bank purchases which have been a notable contributor to recent gold returns.
