Gold prices this week are expected to lack a clear trend, with experts warning that an element of surprise may be necessary for any significant fluctuations. Despite finishing the second quarter with a 4% increase, spot gold prices remained almost unchanged at $2,326 an ounce at the end of last week’s trading session.
The market experienced high volatility last week as precious metal prices fluctuated wildly. After reaching a 2-week low at $2,297, the price quickly reversed to $2,328 the following day. Factors such as US inflation data, USD prices, and US government bond yields continue to impact gold prices.
A survey conducted by Kitco News with bank managers, analysts, and investors revealed uncertainty regarding the trend of gold prices next week. While 50% of respondents chose to stay out of the market and observe, 17% predicted a price decrease and 33% expected an increase.
Analysts like Alex Kuptsikevich from FxPro expressed pessimism about the market due to gold falling below the 50-day moving average. Weak economic data and a dovish stance from the Fed were seen as challenges that could trigger a sell-off. However, other experts like Marc Chandler from Bannockburn Global Forex believed that the market may continue to rise based on recent rebound trends.
Looking ahead, traders expect thin trading volume this week as investors adopt a cautious approach due to geopolitical tensions and upcoming data releases like the June employment report and production index. Additionally, the US financial market will be closed for Independence Day holiday on July 4th which might affect precious metal prices movement in this period.
In conclusion while there is uncertainty about precious metal prices in coming weeks experts believe that unexpected events may be required for significant fluctuations in the market. Economic data, geopolitical tensions and monetary policy decisions will continue to impact gold’s price in coming weeks.
