World gold price movements last week
Precious metal prices rose sharply at the beginning and end of this week, as geopolitical tensions once again dominated daily news headlines and boosted safe-haven cash flow into gold and silver.
Spot gold prices opened the week at 5,146.59 USD/ounce and the upward trend prevailed right from the first trading sessions. After quickly climbing to 5,174 USD at 9:30 PM on Sunday, gold adjusted to the short-term support zone around 5,125 USD at 3:15 AM.
When the North American market entered, buying pressure increased sharply, pushing spot gold prices from 5,146 USD/ounce at 8:45 am to 5,214 USD/ounce at 11:15 am. By 6 pm Eastern time, gold prices surpassed the 5,245 USD/ounce mark - the peak level maintained until developments related to Iran appeared on Friday.
By 8:15 PM on Monday, gold fell back to trading around 5,165 USD/ounce. On Tuesday morning, when the North American market opened, the trend reversed compared to the previous session, gold prices fell deeply to the support zone of 5,100 USD/ounce just half an hour before the stock market opened - also the lowest level of the week.
However, this precious metal did not last long in the low price range. Before 1 pm on the same day, spot gold had recovered to 5,165 USD/ounce.
After slightly falling to the short-term support zone of 5,131 USD/ounce at around 6:15 PM, gold prices entered a mid-week uptrend, once again surpassing the 5,200 USD/ounce mark at 0:30 AM on Wednesday and reaching 5, 215 USD/ounce at noon.
After that, gold entered the only clear accumulation phase of the week, although the price level remained high. Throughout Wednesday and Thursday sessions, spot gold prices fluctuated in a narrowing range of 5,150 - 5,200 USD/ounce.
However, like many recent weeks, the weekend session witnessed strong fluctuations. Information that the US Government issued an evacuation order in the Middle East caused gold prices to soar from 5,185 USD/ounce at 7:30 am to 5,235 USD/ounce after only 45 minutes, before setting a new weekly peak at 5,254 USD/ounce at 11:00 AM Eastern time.
Like the beginning of the week, buying power increased sharply at the end of the week as investors took advantage of hoarding goods before the holidays, pushing gold prices to break through and close the week at a high of 5,281.15 USD/ounce.
Gold price forecast for next week
The latest weekly gold survey with Wall Street experts shows that optimistic sentiment is strongly returning on Wall Street. While small investors (Main Street) continue to maintain a majority leaning towards an upward trend for the fourth consecutive week.
This week, 18 experts participated in Kitco News' Gold Survey. 12 experts (equivalent to 67%) predict that gold prices will exceed the 5,300 USD/ounce mark next week. Only 2 people (11%) believe that prices will decrease. The remaining four analysts, accounting for 22%, believe that the risk of increase-decrease is in a balanced state in the short term.
In Kitco's online poll with 266 votes, individual investor sentiment increased sharply after three consecutive weeks of maintaining optimism around the 60% zone. 202 small investors (76%) expect gold prices to continue to rise next week.
Meanwhile, 34 people (13%) predicted prices would decrease. The remaining 30 people (11%) believe that gold prices will remain flat in the coming days.
Economic data to be tracked next week
The schedule for announcing economic data next week is not too dense, but the reports released have a major impact on the market. Notably, the February jobs report, January retail sales, and updated US manufacturing and service sector indicators.
On Monday, the market will receive the February manufacturing PMI index announced by ISM. By Wednesday, ISM will announce the service PMI, along with the private sector employment report (ADP).
On Thursday, investors will monitor the number of weekly unemployment claims. The trading week will close on Friday morning with two important reports: Nonfarm Payrolls for February and retail sales for January.
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