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On this day — May 28, 2022

Western wedding season: Western (especially US and European) gold and platinum jewellery demand peaks in May, June and December — combined wedding and gift seasons. US jewellery sales typically see 30–50 percent surges in these months.

Saturday — the international gold market is closed. Most retail jewellery markets, especially in Asia and the Middle East, see peak Saturday foot-traffic and physical trade activity.

Day 148 of 365 · Q2 2022 · 40.5% through the year

May 2022 gold market: Gold grinds lower toward $1,840

Bearish

Relentless dollar strength ground gold lower.

Gold drifted down to about $1,840 in May 2022 as the dollar pushed to new multi-decade highs and the Fed delivered a half-point hike. The metal held up better than many risk assets but could not escape the gravitational pull of rising rates.

What drove gold in May 2022

  • Fed +50bp hike
  • multi-decade-high US dollar
  • rising real yields
  • risk-asset selloff
Themes#US dollar strength#Fed policy#rate hikes

Key events in May 2022

  1. May 4Fed hikes 50bp; dollar strength caps gold

What happened next

An even larger June hike pushed gold and most assets sharply lower.

For gold buyers

May showed gold's relative resilience — falling less than stocks or bonds — even as the rate backdrop turned hostile.