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Gold Monthly: The rally stalls
Gold prices have drifted 5% from last month’s peak

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Gold prices hit an all-time high in May but have since drifted 5% from that peak due to stronger-than-expected US jobs data and China's central bank halting its gold purchases. The rally in gold has stalled amid a stronger dollar and subdued China buying, which could dent gold. The US jobs report has also pushed back expectations on when the Fed may start cutting rates, impacting gold prices. China's central bank did not add to its gold reserves in May for the first time since October 2022, leaving gold vulnerable to more downside pressure. However, global gold ETFs saw inflows in May for the first time in 12 months. ING forecasts that gold prices may come down slightly this quarter and sees prices averaging $2,300/oz in the second quarter and an annual average of $2,255/oz in 2024. They also expect prices to peak in the fourth quarter.