Gold prices experienced a volatile week
Last week, except for a few dips, the precious metal traded in a $25 range above $2,500 an ounce. Spot gold started the week trading above $2,514 an ounce. By early Tuesday morning, spot gold had fallen to a weekly low of $2,505 an ounce.
Spot gold hit a weekly low of $2,496 an ounce on Wednesday morning before rebounding to $2,505 an ounce. It has since rallied sharply, peaking above $2,523 an ounce on Thursday before a sell-off coincided with the release of the US second-quarter GDP and the country’s weekly jobless claims report.
The most anticipated economic indicator of the week is the US PCE price index report for July, which was released on Friday morning. Despite matching economists’ expectations, gold prices still fell to a new low for the week at $2,494.21 an ounce.
Gold prices soon returned to $2,505 an ounce and continued to hover around the $2,500 an ounce support level throughout Friday's trading session.
Expert predicts surprise
The latest Kitco News weekly gold survey found that investors are reining in their recent optimism on gold prices, while industry experts are evenly split on their gold price forecasts for next week.
Fifteen analysts took part in the Kitco News gold survey. Five analysts see gold prices rising next week. Five see it falling lower next week. The remaining five see sideways trading for the precious metal.
Meanwhile, 199 votes were cast in Kitco's online poll. 112 retail traders expect gold prices to rise next week. Another 47 see the yellow metal trading lower, while 40 see prices consolidating next week.
After gold prices were dominated by US inflation data released on Friday, market participants will focus next week on employment figures as North American markets return from the weekend.
On Tuesday, the market will receive the US ISM manufacturing PMI for August. On Wednesday, there will be the Bank of Canada monetary policy decision and the US JOLTS Job Openings. Then on Thursday, traders will watch the ADP employment index for August, the weekly jobless claims report and the US ISM services PMI.
However, the most attention-grabbing event next week will be the US non-farm payrolls report for August, due out Friday morning. Some market experts believe the report could boost the Federal Reserve's expected September interest rate cut from 25 basis points to 50 basis points.
