Higher-for-longer: Inflation not growth

In April, gold prices increased by 4%, peaking at $2,307 per ounce, but experienced a pullback from the month's highest levels, primarily due to factors like diminished buying interest and profit-taking activities. This downturn was noticeable through reduced premiums in Chinese markets and lower gold imports in India, alongside stable trading positions on COMEX. Despite these fluctuations, ETF flows in North America showed a slight positive trend, complemented by strong demand from Asian ETFs.

The Gold Return Attribution Model (GRAM) highlighted that while geopolitical risks and activities on the Shanghai futures exchange provided some insights into the market movements, the significant influence of central bank purchases was evident, suggesting a substantial impact on gold's pricing dynamics during the month.

Source:

'Gold Market Commentary: Higher-for-longer: Inflation not growth', World Gold Council , May 8, 2024