World gold price movements last week
Gold prices have just experienced another week of strong fluctuations, as safe-haven demand from new tensions in the Middle East has been repeatedly overwhelmed by the strengthening USD, high US Treasury bond yields and new inflation concerns related to the US-Iran conflict.
Spot gold prices started the week at 4,508.3 USD/ounce on Sunday evening and quickly went up as traders reacted to prolonged geopolitical instability, at times testing the resistance zone near 4,580 USD/ounce.
The upward momentum was maintained on Monday but began to weaken from Tuesday, as gold could not extend its upward momentum amid a stronger USD and the market awaiting important US inflation data for the week.
Selling pressure accelerated in the middle of the week after new US attacks on Iran pushed oil prices up, raising concerns about inflation and reducing expectations of a sustainable ceasefire.
Gold prices fell below $4,500/ounce on Wednesday, then continued to plummet on Thursday as traders prepared to receive the April PCE inflation report and adjusted US Q1 GDP data. Spot gold prices finally set a weekly low of $4,365.85/ounce right after midnight on Thursday.
The precious metal began to recover at the end of Thursday and extended its recovery momentum to Friday, after reports of progress towards a potential agreement between the US and Iran contributed to cooling down oil prices, while easing some of the week's inflationary concerns.
Weakening US Treasury bond yields also supported the upward momentum, helping gold prices jump to a weekly high of 4,594.92 USD/ounce on Friday before the upward momentum lost momentum. Spot gold closed the week at 4,539.03 USD/ounce.
Gold price forecast for next week
Kitco News' latest weekly gold survey shows that Wall Street analysts are returning to optimism about the short-term outlook for gold prices, while the sentiment of individual investors on Main Street is shifting to a pessimistic zone, despite the recovery momentum of gold at the end of the week.
This week, 12 analysts participated in Kitco News' gold survey. Wall Street sentiment has shifted strongly back to the positive zone after gold prices rebounded from important support zones.
Among them, 9 experts, equivalent to 75%, predict that gold prices will increase next week; 2 other experts, accounting for 17%, believe that gold prices will decrease. The remaining expert, equivalent to 8%, predicts that gold prices will go sideways next week.
Meanwhile, Kitco's online poll recorded 39 participants, showing that individual investors have finally lost their majority in favor of an upward trend, although gold prices still show certain resistance.
17 individual traders, equivalent to 44%, predict gold prices will increase next week; 10 others, accounting for 26%, believe that this precious metal will decrease in price. The remaining 12 investors, equivalent to 31%, predict gold prices will remain flat next week.
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