Gold price developments last week
The gold market this week struggled to regain balance after the tariff shock from last week. Conversely- responding inflation and consumer data are not attractive enough to attract investors to open new positions.
Spot gold prices opened the week at $3,394.89/ounce, but the storm of tariffs from Switzerland continued to pull prices down. By 9:00 p.m. on Sunday (Eastern time), gold had fallen to $3,373/ounce, and by 8:15 a.m. on Monday, the price had fallen below $3,350/ounce.
When the North American market opened, gold sometimes rebounded to $3,360/ounce but quickly weakened. After the North American trading session, gold hit a short-term bottom of over $3,340/ounce.
In the following days, gold moved sideways within a $30 range, recording a low of $3,335/ounce at 10:15 a.m. Tuesday and rising to $3,367/ounce at 10:00 a.m. Wednesday after the US CPI report met the forecast.
On Wednesday evening, prices fell to $3,370 an ounce at times, but quickly cooled down, hovering around $3,350 when the US PPI report for July released on Thursday morning.
The strong PPI has rocked the market's almost certain confidence that the Fed will cut interest rates in September, pushing gold to the bottom of the week just above $3,330 at noon on Thursday. Gold then moved into a narrow range of just $10 by the end of the week, despite retail reports and consumer confidence not having a big impact.
Experts predict next week
A weekly gold survey by an international financial information platform shows that the majority of Wall Street experts believe that gold will continue to move sideways, while the majority of Main Street investors still maintain the view that prices may increase next week.
Of the 10 experts participating, only 1 (10%) predicted gold prices to increase, 1 person (10%) predicted a decrease, while the majority (80%) expected prices to remain flat next week.
In contrast to Wall Street, individual investors on Main Street still maintain an optimistic mentality. Of the 183 online survey participants, 115 people (63%) expect gold prices to increase, 33 people (18%) predict a decrease and 35 people (19%) believe that prices will continue to accumulate.
US economic data to watch
Tuesday: Housing construction data and construction permits for July.
Wednesday: Minutes of the July FOMC meeting, speeches from Fed officials Waller and Bostic, and opening of the Jackson Hole conference.
Thursday: Philly FED manufacturing index, weekly jobless claims, preliminary PMI for August, and July existing home sales.
Friday: FED Chairman Jerome Powell annual speech at Jackson Hole.
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