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Gold prices hit a new high in April, reaching over $2,400/oz, driven by strong demand from central banks and geopolitical tensions. Despite a stronger dollar, gold has risen by 12% this year. The US Federal Reserve's policy has been a key driver of gold prices, with expectations of rate cuts later this year. Central banks, particularly China, continue to buy gold, but the pace of buying has slowed as prices have reached record highs. However, physically backed gold exchange-traded funds (ETF) flows are declining, with global ETF holdings falling to the lowest since February 2020. ING forecasts a slight pullback in gold prices this quarter, with an average of $2,250/oz, peaking at $2,300/oz in the fourth quarter. The publication emphasizes that the information provided is for informational purposes only and does not constitute investment recommendation.
