World gold price movements last week
Gold prices experienced another week of strong fluctuations, as safe-haven demand at the beginning of the week due to instability in the Middle East quickly gave way to strong selling pressure after the US Federal Reserve (Fed) kept interest rates unchanged but signaled that the possibility of raising interest rates in 2026 is still open.
Spot gold prices opened the week at 4,210.52 USD/ounce on Sunday evening, then quickly went up as traders continued to reflect geopolitical risks related to the US-Iran conflict and the Strait of Hormuz.
The upward momentum lasted in trading sessions on Monday and Tuesday, with gold prices maintained above the threshold of 4,300 USD/ounce in the context of the market waiting for the Fed's decision, while monitoring signs of progress towards cooling regional tensions.
Gold prices had the strongest increase on Wednesday, when spot prices peaked the week at 4,381.83 USD/ounce just minutes before the interest rate announcement. However, the upward momentum quickly reversed after the Fed kept interest rates unchanged at 3.50% - 3.75%, and signaled that another interest rate hike before the end of the year could still occur.
This tough stance has pushed the USD and US Treasury bond yields up, putting pressure on gold, although concerns about inflation and the Middle East situation are still present.
The sell-off of this precious metal accelerated on Thursday, after the US and Iran signed a preliminary agreement to end the war and reopen the Strait of Hormuz.
This development helped oil prices cool down, while reducing part of the attractiveness of safe havens for gold. Spot gold prices fell back below the threshold of 4,250 USD/ounce and finally bottomed the week at 4,201.14 USD/ounce on Thursday afternoon, when the US market closed before the Juneteenth holiday on Friday.
Gold price forecast for next week
The latest weekly gold survey shows that the downside forecasting side has returned to dominate Wall Street after the tough stance of the US Federal Reserve (Fed). Meanwhile, Main Street sentiment recovered to the optimistic zone, despite gold prices falling at the end of the week.
This week, 10 analysts participated in a gold survey by Kitco News. The mainstream view on Wall Street shifted to negativity as gold prices lost their gains, after the possibility of interest rate hikes returned to market observation.
Only 1 expert, equivalent to 10%, predicts gold prices will increase next week. Meanwhile, 7 other experts, accounting for 70% of the total number of survey participants, predict gold prices will decrease. The remaining two experts, equivalent to 20%, believe that the precious metal will move sideways next week.
Meanwhile, Kitco's online poll recorded 46 votes. Main Street investors returned to their familiar optimistic state, despite the weakening of gold after the Fed meeting.
25 individual investors, equivalent to 54%, expect gold prices to increase next week. 16 others, accounting for 35%, forecast that the precious metal will decrease in price. The remaining 5 investors, equivalent to 11%, believe that gold prices will enter an accumulation phase next week.
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