Funds flow from cryptocurrency into gold.

In May 2021, gold continued the rebound that began in April. U.S. Treasury yields remained fluctuating as a whole, and inflation expectations rebounded at the beginning of the month and then fell back in the second half of the month. The fall of the US dollar index and the outflow of funds from cryptocurrency into gold are the main driving forces for the continued rebound of gold. U.S. Treasury yields have not been driven significantly upward in the short-term, actual inflation still has room for short-term recovery, and the overall commodity price will not immediately reverse downward after the end of the Sino-US active replenishment cycle. These are the short-term support factors for gold prices. At the same time, the tightening of cryptocurrency supervision may make it difficult to trend upward in the short term, and the sluggishness of funds favors gold. In the medium term, gold still needs to face the negative effects of rising actual yields and bottoming of inflation expectations. It is not recommended to chase more at the current position.