World gold price movements last week
Gold prices have just experienced a week of strong fluctuations. Support from safe-haven demand at the beginning of the week quickly weakened, giving way to a strong sell-off in the middle of the week after US inflation data was hotter than forecast, conflict in the Middle East escalated again and expectations of the US Federal Reserve (Fed) raising interest rates increased.
These factors pulled gold prices back to the 4,000 USD/ounce support zone before the precious metal recovered above 4,200 USD/ounce by the end of the week.
Spot gold prices started the week at 4.327.46 USD/ounce on Sunday evening. Prices continued to rise on Tuesday, as investors closely monitored the developments of the US-Iran conflict and the risk of disruption in the Strait of Hormuz.
However, the increase slowed down after Iran signaled the end of military operations against Israel, thereby somewhat easing the short-term geopolitical risk resonance level. Gold prices then peaked the week at 4.662.94 USD/ounce on Tuesday before the selling side gained the upper hand.
The reversal accelerated in Wednesday's session, after the US consumer price index (CPI) in May increased by 4.2% compared to the same period last year, the fastest increase since 2023.
Meanwhile, fighting in the Middle East broke out again pushing oil prices up, raising concerns that energy inflation could force the Fed to maintain a tough stance.
Gold prices plummeted below 4,200 USD/ounce and hit a week low of 4,023.1 USD/ounce on Wednesday, the lowest level since the end of 2025.
Precious metals partially recovered in Thursday's session, although rising wholesale prices continued to reinforce the negative inflation picture. The producer price index (PPI) increased by 1.1% in May and 6.5% year-on-year, the strongest annual increase since November 2022.
In Friday's session, gold prices continued to strive to stabilize as expectations of a potential agreement between the US and Iran contributed to pulling US Treasury bond yields and the USD down. However, the recovery momentum was still limited after the inflation shock in the week.
After failing to regain the 4,250 USD/ounce mark, spot gold closed the week at 4,210.52 USD/ounce, marking another week of price decline.
Gold price forecast for next week
Kitco News' latest weekly gold survey shows that Wall Street experts are hesitant and switch to a state of observation ahead of the US Federal Reserve (Fed) meeting.
Meanwhile, individual investor sentiment on Main Street leaned towards a negative trend after gold prices fell close to the 4,000 USD/ounce threshold.
This week, 17 experts participated in a gold survey by Kitco News. The results showed that Wall Street has shifted from a mostly downward trend to a cautious sentiment, after gold prices are under strong pressure but have not yet broken the important support zone. There are 4 experts, equivalent to 24%, predicting gold prices will increase next week; 2 other experts, equivalent to 12%, believe that prices will decrease.
Most experts, including 11 people, equivalent to 65%, chose to stand by and wait for clearer signals from the Fed.
Meanwhile, Kitco's online poll recorded 70 participation votes. Individual investor sentiment shifted to pessimism after the less positive developments of gold prices.
There are 27 individual investors, equivalent to 39%, expecting gold prices to increase next week; 34 people, equivalent to 49%, forecast that the precious metal will continue to depreciate. The remaining 9 investors, accounting for 13%, believe that gold prices may fluctuate in both directions next week.
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