HCMC – Global gold prices continued their upward movements in May, reaching an all-time high of US$2,427 per ounce mid-month, the World Gold Council (WGC) reported today, June 14. This marked the third consecutive monthly rise of the precious metal.
There was clear evidence of a strong gold market, with investors actively buying gold in anticipation of higher prices, according to the report.
This bullish sentiment was reflected in a surge in “net long positions” on the COMEX exchange, meaning more investors were buying gold futures than selling them at one of the world’s largest futures and options trading for metals.
Gold-backed exchange-traded funds (ETFs) saw a net inflow of US$529 million, their first monthly increase in investment since May 2023.
“No single variable dominated May’s performance,” said the WGC. The organization attributed the situation to several factors, including a weaker U.S. dollar and central bank purchases.
Investors in Europe and Asia were the primary drivers of new investments into gold-backed ETFs globally. Asian funds, in particular, have seen 15 months of continuous investment, with US$398 million flowing into these funds in May alone.
Within Asia, China was the biggest contributor to this demand, likely due to the record-high price of gold in local currency and the weakening of the Chinese yuan against other currencies.
Shaokai Fan, head of Asia-Pacific (ex-China) and Global head of Central Banks at the WGC, said future gold prices would be heavily influenced by the U.S. economy’s performance and inflation levels. If the U.S. dollar weakens, gold could become more attractive to investors.
