Gold closed the month in red, but it is targeting $ 2,000 per ounce.

Gold prices retreated from the 10-month highs in recent sessions, leaving investors wondering why the many geopolitical and economic problems that hamper the market are not able to fully support the metal.

Gold has shed this multimonth peak just over a week ago amid uncertainty about Brexit, the US-China trade dispute, and global economic growth. Prices on Thursday, however, suffered a loss for the month by cutting off four-month gains - the longest trend since 2016.

Gold still faces supply challenges and any uptick in demand would tighten inventories.

On the demand side, central banks have been on a gold buying spree, lifting 2018 net purchases of the metal to 651.5 metric tons—their highest in more than 50 years, as geopolitical uncertainty and economic worries prompted national banks to diversify their reserves

Carlos Artigas, director of the WGC investment research, says central banks are net gold buyers on an annual basis since 2010. A recent study shows that one-fifth of central banks have signaled that they will increase their gold purchases in the next 12 months.

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