Experts make surprising predictions about gold prices next week

Gold price developments last week

Gold prices started the week on a strong note, but high inflation data and a stronger US dollar dragged the precious metal lower towards the end of the week.

Spot gold started the week at $2,633 an ounce. Since then, gold prices have been on a steady rise, leaving many precious metals traders fairly optimistic, although they remain wary of upcoming inflation data.

As of 8:15 a.m. EST Monday, gold was trading around $2,656 an ounce. The precious metal quickly gained another $20 an ounce over the next two hours, peaking at $2,676 an ounce around 10 a.m. the same day.

Gold prices then eased back to retest $2,660 an ounce. Spot gold broke short-term resistance at $2,677 an ounce on Tuesday morning and briefly crossed $2,700 at 8 p.m.

The release of largely in-line CPI data on Wednesday morning continued to push gold higher. Spot gold hit a weekly high of $2,726.28 an ounce by 1 a.m. EST on Thursday. After a brief pullback to test support near $2,705 an ounce, spot gold appeared to stabilize, hovering within $20 of $2,700 an ounce.

However, the US Producer Price Index (PPI) report released on Thursday morning sent gold prices tumbling. The higher-than-expected inflation data sent spot gold prices tumbling to the previously important $2,676 an ounce level in just two hours. Although that level held, gold prices remained within a narrow $10 range for the rest of Thursday.

Gold prices continued to weaken on Friday morning, falling below the support level of $2,676.

What do experts predict about gold prices?

The latest Kitco News weekly gold survey found that industry experts are mixed between bullish and bearish. The majority of participants remain neutral, while retail sentiment remained unchanged from last week.

Fourteen analysts took part in the Kitco News gold survey. Wall Street sentiment was evenly split between bullish and bearish on gold. Four experts, or 29%, predicted gold prices would rise next week. Six experts expected prices to be flat. Meanwhile, four others predicted prices would fall.

Meanwhile, 144 votes were cast in Kitco’s online poll, with the majority of investors remaining bullish on the precious metal after a volatile week.

87 traders expect gold prices to rise next week. There are 24 who predict gold prices will fall. The remaining 33 investors expect gold prices to move sideways in the short term.

Economic data to influence gold prices next week

The biggest economic event next week will be the Federal Reserve's final interest rate decision of 2024 on Wednesday afternoon.

While markets have fully priced in a 25 basis point rate cut, the real focus will be on the content of the monetary policy statement and Chairman Powell's press conference for clues on the central bank's upcoming direction.

The Bank of England will also announce its interest rate decision on Thursday.

Economists will get more updated insights into the health of the US consumer with the November Retail Sales report on Tuesday and the Personal Consumption Expenditures (PCE) Index on Friday.

Other important data include the Empire State Manufacturing Survey and S&P Flash PMI on Monday; final US Q3 GDP, Philly Fed Manufacturing Survey, November existing home sales report and weekly jobless claims on Thursday.