In May, gold continued its upward trend, recording a 2% increase to close at $2,348 per ounce, marking the third consecutive month of gains. The price even reached a new all-time high of $2,427 per ounce during the month before experiencing a pullback, likely due to profit-taking. The market support was evident, with COMEX seeing a four-year high in net long managed money positions and gold ETFs receiving significant net inflows of $529 million, the first since May of the previous year.
According to the Gold Return Attribution Model (GRAM), the positive movement in gold was influenced by several factors, but no single variable stood out distinctly for May. Central bank purchases and over-the-counter buying were identified as significant contributors to the month's gold returns.
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