Gold price developments last week
After one of the most strange weeks of the global market, gold has once again become the most sought-after asset, thanks to the wave of increased concerns and instability.
Spot gold prices started the new week at $3,032.32/ounce. On Sunday evening, gold fell slightly to support at $2,978/ounce, then quickly rose back above $3,000/ounce in the Asian trading session.
As North American markets opened, gold was pulled down to $2,959/ounce, which was also the lowest level of the week.
In the first two days of the week, gold was trading in a narrow range of $2,980 to $3,017/ounce. As the Asian market opened on Tuesday evening, a strong rally began, from the support level of $2,980/ounce, gold skyrocketed to $3,073/ounce when the North American market opened on Wednesday. By 1:00 p.m. (Eastern time), gold had set a new historical peak of $3,092/ounce.
After that, US President Donald Trump suddenly announced that he would temporarily suspend the 90-day retaliatory tax on all countries except China. This information has triggered a strong wave of increases in the stock market, Bitcoin and other risky assets, while causing gold prices to decline. However, by 15:30, gold had fully recovered, leaping up to test the $3,100/ounce mark.
The risk-off mentality did not last long. On Thursday and Friday, stocks fluctuated in a state of strife, as investors worried about a series of increasingly escalating retaliatory measures from the US and China.
At the same time, the USD index fell below 100 and US bond yields increased from the bottom for decades, making gold the last remaining safe haven channel.
After surpassing $3,100/ounce on Wednesday night, gold continued to increase. When the North American market opened on Thursday morning, prices surpassed $3,140/ounce. The Asian version continues to push prices above $3,200/ounce.
After re-checking the $3,190/ounce mark at around 1:30 a.m. on Friday, gold continued to climb and peaked at $3,245.48/ounce right after noon (east of the US time).
Since then, the market has turned steady, with an range of around 20 USD before the weekend break.
Experts predict gold prices next week
The latest weekly gold survey from Kitco News shows that industry experts are more optimistic about gold than ever. While retail investors are gradually expecting more positiveness as most other assets weaken.
This week, 16 analysts participated in the Kitco News survey. Wall Street is almost in agreement that gold prices will continue to increase in the short term.
15 people (94%) predict gold prices will increase next week, no one thinks gold will decrease. Only 1 person (6%) believes that gold will stay at its current high without increasing further.
Meanwhile, 275 investors participated in Kitco's online survey. The sentiment of retail investors is also more positive as other assets have decreased in price.
189 people (69%) see gold prices rising next week. 50 people (18%) predict gold will fall, while the remaining 36 people (13%) see prices moving sideways.
Economic calendar affecting gold prices next week
Next week, central banks will continue to be the focus, as investors await the speech of Federal Reserve Chairman Jerome Powell on Wednesday at the Chicago Economic Club, where he will share his views on economic prospects.
Also on Wednesday, the Bank of Canada (BoC) will announce its monetary policy decision. Analysts predict that the BoC will keep interest rates unchanged.
On Thursday, the European Central Bank (ECB) is expected to cut interest rates to continue supporting the regional economy.
In addition, there will be some notable economic data next week such as: Empire State manufacturing survey on Tuesday; weekly jobless claims, construction permits and Philly Fed manufacturing survey due on Thursday.
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