Gold faced several hurdles throughout the week, with little favorable economic data to support its rise. Nevertheless, the precious metal demonstrated strength, gradually climbing to close the week on a positive note.
The week began with spot gold trading near $2,652 per ounce, dipping to a low of $2,640 during Sunday night. By Monday morning, gold briefly hit $2,660 but quickly returned to test the $2,640 support level multiple times. By Monday night, gold broke below that support, falling further.
Tuesday saw more volatility as gold initially bounced from $2,632 to $2,650 before a sharp drop to $2,609, the week’s lowest point. After this decline, gold remained in a tight range between $2,606 and $2,620 as markets awaited Wednesday’s release of the Federal Open Market Committee (FOMC) minutes. While the FOMC revealed hesitations about a 50 basis point interest rate cut, gold held steady and began a slow upward trend.
On Thursday, the release of consumer inflation data, which ran hotter than anticipated, added volatility to the market but ultimately pushed gold prices higher. By midnight, gold climbed to just above $2,645 before stabilizing ahead of Friday’s Producer Price Index (PPI) report. The PPI numbers were in line with expectations, allowing gold to recover to $2,661.47 by midday, marking a fresh weekly high.
According to the latest Kitco News Weekly Gold Survey, a minority of industry analysts expect gold to continue rising next week, while optimism among retail investors slightly declined for the third week in a row.
Marc Chandler, managing director at Bannockburn Global Forex, noted, “Gold found support near $2,600 and bounced to $2,650 after the US PPI release, but higher interest rates and a firm dollar could weigh on the metal moving forward.”
Darin Newsom, senior market analyst at Barchart.com, remained bullish, citing geopolitical uncertainties as factors that could drive investors to seek gold as a safe-haven.
Opinions remained divided among analysts and market strategists. While some, like James Stanley of Forex.com, foresee more upside potential, others, such as Colin Cieszynski of SIA Wealth Management, predict a quiet week ahead with gold trading in the $2,600-$2,700 range due to a light economic calendar and upcoming holidays.
Geopolitical tensions, particularly in the Middle East, continue to support gold’s outlook, with Daniel Pavilonis of RJO Futures suggesting that events surrounding Iran, Israel, and other global uncertainties could push prices even higher. He also pointed to upcoming U.S. elections and ongoing de-dollarization efforts as potential drivers for increased demand for gold.
Analysts at CPM Group are more cautious, recommending a sell position in the near term but acknowledging the potential for gold to test the upper range of recent prices.
Looking ahead, markets will be monitoring U.S. retail sales and manufacturing surveys in the coming week. With geopolitical uncertainties persisting, analysts remain split on gold’s near-term direction, though many acknowledge that its safe-haven appeal continues to underpin demand.
At the time of writing, spot gold traded at $2,657.07 per ounce, up 1.03% for the day and 0.21% for the week.
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