Gold prices experienced notable fluctuations this week but ended up near the same level they started, reflecting the persistent volatility and strong market sentiment. The precious metal opened the week around $2,505 per ounce but saw a dip below $2,500 mid-week. By the end of Monday, North American investors drove prices back above $2,500, where they remained for the rest of the day, aside from a few dips.
On Tuesday, gold prices surged to a weekly high of over $2,530 per ounce, driven by strong early trading. However, this peak was short-lived as gold prices retraced to $2,506 by noon Eastern Time. The rest of the week saw gold consolidate between $2,519 and $2,500, establishing $2,500 as a key support level.
A significant move occurred on Thursday morning when worse-than-expected U.S. jobless claims pushed gold prices down to a weekly low of $2,475 per ounce. Despite this dip, gold began a gradual recovery over the final two days of the week, with prices touching $2,517 per ounce early Friday before settling around $2,510.
The latest Kitco News Weekly Gold Survey reveals a strong consensus among analysts and retail investors that gold could surpass recent all-time highs. Marc Chandler of Bannockburn Global Forex noted that despite the record high of $2,531.75 early in the week, gold consolidated and faced support around $2,471. Chandler expects gold to rise further but anticipates a possible consolidation phase with initial support around $2,460-$2,470.
Adam Button of Forexlive remains bullish, suggesting that the momentum for gold is strong. Darin Newsom from Barchart.com predicts a potential downtrend, with a target near $2,493, while Kevin Grady from Phoenix Futures and Options sees the market focusing on Fed rate cuts as a key driver for gold prices. Grady believes that gold will likely hit new highs and that support levels will be around $2,460, with $2,500 serving as a psychological level.
James Stanley from Forex anticipates a pullback to test below $2,500, but does not expect a long-lasting bearish trend. John Weyer of Walsh Trading and Michael Moor from Moor Analytics foresee consolidation and possible corrections in gold prices, with Weyer noting that support levels around $2,450 could be significant.
Overall, the majority of analysts are optimistic about gold’s potential for further gains, driven by technical factors and fundamental support. Key upcoming data, including U.S. inflation metrics and comments from Fed officials, will likely influence gold prices in the coming week.
At the time of writing, spot gold was trading at $2,509.97 per ounce, reflecting a 1.02% daily gain and a nearly flat weekly performance of 0.13%.
