Gold price developments last week
Over the past week, world gold prices have continuously accumulated upward momentum before exploding to a four-month high. Precious metals prices broke out as less positive economic data gradually were released, reinforcing expectations that the US Federal Reserve (FED) would cut interest rates in September.
Spot gold prices started the week at $3,367.79/ounce. The first session was quite quiet as gold only fluctuated within a range of 10 USD. By 7:30 p.m. EDT on Monday, gold prices suddenly fell to $3,353/ounce, but immediately rebounded, reaching $3,383/ounce at 8:45 p.m. This breakout also set a new support zone around $3,370/ounce.
By Tuesday afternoon, the precious metal had approached $3,394/ounce. On Tuesday night, gold turned around to re-essence the support zone around $3,375/ounce. But by 7:30 p.m. on Wednesday evening, prices had set a new peak for the week, just a little above $3,400 an ounce.
The support zone was then raised to $3,385 an ounce, preparing for a strong US session on Thursday. As expected, gold increased sharply in the North American session, sometimes surpassing 3,422 USD/ounce just 15 minutes before the stock market closed.
In Asian and European trading sessions, gold mainly moved sideways to consolidate, re-checking supporting regions many times but did not slide below $3,405/ounce.
The highlight came on Friday morning: from $3,408.87/ounce at 8am, gold prices broke out continuously, reaching $3,450 at 12:15 at noon, then set a weekly peak of $3,453.97/ounce just before the market entered the long weekend break.
Gold price forecast for next week
The weekly gold survey of an international financial information platform shows that Wall Street is fully supportive of the scenario of gold prices continuing to increase. While the majority of retail investors also expect the precious metal to rise next week.
This week, there were 14 analysts participating in the survey. After last week's strong price increase, no expert predicts that gold will decrease. Of these, 12 people (86%) expect gold prices to rise next week, while the remaining 2 people (14%) expect gold to move sideways.
179 investors participated in online voting. After a week of strong gold gains, optimism is also spreading: 121 investors (68%) predict gold prices will continue to increase, 30 people (17%) believe gold will decrease, while 28 people (16%) predict gold will fluctuate sideways in the following week.
Economic data to watch next week
Next week will be a shorter trading week for the world market as North American markets close on Monday to celebrate Labor Day. The focus will be on US employment data.
On Tuesday, the market will receive the August ISM manufacturing PMI, followed by the JOLTS job opportunity data on Wednesday.
There will be an ADP jobs report for August on Thursday, along with weekly jobless claims and the ISM services PMI.
The week ended on Friday with the US non-farm Payrolls August report. Investors and traders will be monitoring signs of weak jobs as a further confirmation of expectations that the Fed will cut interest rates in the middle of the month.
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