World gold prices have just closed a volatile trading week when they repeatedly broke through the psychological milestone of 4,000 USD/ounce before recovering slightly at the end of the week.
According to market developments, spot gold prices opened the week around 4,108.18 USD/ounce, then rose to a weekly high of 4,122.63 USD/ounce in the first session of the week. However, the upward momentum quickly weakened as the USD maintained its strength and investors limited increased safe-haven positions.
By midweek, the precious metal received certain support after the US consumer price index (CPI) in June increased by 3.5%, lower than market expectations. Gold prices at one point recovered to over 4,050 USD/ounce but did not last long.
Selling pressure increased sharply in the last sessions of the week after US retail sales exceeded forecasts, strengthening the view that the US Federal Reserve (Fed) may continue to maintain tight monetary policy for a longer time.
Spot gold prices at one point fell to the week's lowest level of 3,959.37 USD/ounce before bottom-fishing buying appeared, helping prices recover above 4,000 USD.
At the end of the week, spot gold price stood at 4,015.83 USD/ounce, down about 1.8% compared to the end of last week.
The fact that gold prices continuously fluctuate around the 4,000 USD zone shows that this is still an important support zone for the market. However, the fact that it cannot return above the 4,050 USD zone reflects that buying power is still quite cautious in the context that investors continue to monitor the Fed's interest rate outlook and geopolitical developments.
