World gold price movements last week
Gold prices experienced another week of strong fluctuations as safe-haven demand due to geopolitical instability continuously faced rising USD, US Treasury bond yields rose and persistent inflation concerns could force the US Federal Reserve (Fed) to maintain its "hawkish" stance for longer.
Spot gold prices opened the week at 4,539.09 USD/ounce on Sunday evening. After a short decline at the beginning of Asian trading, gold prices increased steadily on Monday and extended to Tuesday, as traders reacted to instability related to the Iranian conflict and global risk concerns.
The last increase slowed down right below the threshold of 4,600 USD/ounce. Gold prices recorded the highest level of the week at 4,588.64 USD/ounce before selling pressure returned to prevail.
The reversal momentum accelerated in the North American session on Tuesday as the USD strengthened and the market adjusted inflation expectations amid rising energy prices and forecasts that the Fed would continue to maintain a tough policy. Gold prices lost the $4,500/ounce mark and selling pressure extended to Wednesday, pushing spot prices to the lowest level of the week at $4,453/ounce before the release of the FOMC minutes of the April meeting.
The minutes show that Fed officials are still concerned about inflation risks, especially related to energy prices and tariffs, thereby limiting the sustainable recovery of gold.
Gold prices recovered above the 4,500 USD/ounce mark on Thursday. On Friday, the market continued efforts to stabilize as expectations of cooling tensions in the Middle East temporarily pulled bond yields down.
However, weakening consumer sentiment in the US, increased inflation expectations and "hawkish" statements from Fed Governor Christopher Waller continued to put pressure on the precious metal before the weekend holiday. At the close of the session, spot gold price stood at 4,508.25 USD/ounce.
Gold price forecast for next week
Weekly gold survey results show that Wall Street analysts still maintain a pessimistic view of gold's short-term outlook, while individual investors continue to maintain optimistic sentiment despite the decline of the precious metal.
This week, 13 experts participated in the survey. Although Wall Street sentiment has somewhat improved, analysts still lean towards a downward trend after gold once again failed to maintain important support levels.
Only 2 experts, equivalent to 15%, predict that gold prices will increase next week. Meanwhile, 8 others, accounting for 62%, believe that prices will continue to fall. The remaining three analysts, equivalent to 23%, predict that gold will move sideways next week.
Meanwhile, Kitco's online survey recorded 32 votes from individual investors. Although gold prices have weakened, this group of investors still maintains a positive view of the precious metal.
There are 18 small investors, equivalent to 56%, predicting gold prices will increase next week. Seven others, accounting for 22%, believe that gold prices will decrease. The remaining seven investors, equivalent to 22%, predict that gold prices will fluctuate sideways next week.
Notable economic data for next week
The world trading week will be shortened due to the long holiday on the occasion of Memorial Day. However, important economic data will rush to appear as the market reopens on Tuesday with the Conference Board's consumer confidence report.
Investors paid special attention to this index after the final results of the consumer sentiment survey released by the University of Michigan on Friday were lower than expected.
Most of the economic data in the week will focus on Thursday morning. The market will track preliminary Q1 GDP data, PCE index, weekly unemployment claims, along with reports on durable goods orders and new home sales in April.
See more news related to gold prices HERE...
