Experts remain fairly neutral about gold prices next week.
Gold prices go through a crazy "dancing" week
Last week, gold prices continued to "dance" as the market reinforced expectations that the US Federal Reserve (FED) would cut interest rates at its meeting in September. However, the precious metal rose too high, too fast, and after a big profit-taking wave from investors, gold prices returned to where they started.
Spot gold opened the trading week at $2,411.65 an ounce. By Tuesday morning, the price had risen sharply to over $2,440 an ounce.
However, the precious metal quickly fell below $2,430 an ounce after the release of a slightly better-than-expected U.S. retail sales report for June. However, by Tuesday evening, spot gold had set a new all-time high above $2,482 an ounce.
Traders then turned their attention to fresh comments from the Fed. As expectations for a rate cut grew, spot gold hit a new record high above $2,483 an ounce. However, the yellow metal failed to fully break the resistance level and retreated to $2,452 an ounce.
Recent gold price developments.
Gold prices failed to break above $2,470 an ounce after a higher-than-expected U.S. weekly jobless claims report on Thursday morning. Spot gold then began a long decline, from $2,468.48 an ounce on Thursday to a weekly low of $2,393.88 an ounce on Friday morning (U.S. time).
Gold prices continued to test the important level of 2,400 USD/ounce throughout the trading session on Friday. Recorded at 12:00 on July 20, 2024, the world gold price listed on Kitco was at 2,400.8 USD/ounce.
Experts maintain a balanced stance
The latest Kitco News weekly gold survey shows industry experts are returning to a balanced stance, while retail sentiment remains bullish on gold prices next week.
Gold price forecast next week.
Sixteen Wall Street analysts participated in the Kitco News Gold Survey, which found a balanced outlook with uncertainty returning after weeks of bullish forecasts for the precious metal.
Six experts predict gold prices will rise next week. Six experts predict prices will fall. The remaining four analysts believe gold will trend sideways next week.
Meanwhile, 168 votes were cast in Kitco’s online poll. Main Street investors remain bullish on gold’s near-term outlook, but expectations have also softened from last week.
103 retail traders forecast gold prices to rise next week. Another 36 expect the precious metal to trade lower. Twenty-nine see gold prices moving sideways.
Investors will be looking ahead to key inflation data next week with the release of the U.S. Core Personal Consumption Expenditures Index for June on Friday morning. The inflation reading will likely help the Fed confirm the timing of a rate cut. Economists say weaker inflation data will give the central bank room to cut rates.
Traders will also be watching key housing data with existing home sales on Tuesday and new home sales on Wednesday. The Bank of Canada will make its monetary policy decision on Wednesday.
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