Gold Market Forecast: Precious Metal Prices May Fluctuate Without Clear Trend This Week; Analysts Uncertain on Direction

Precious metal prices are expected to lack a clear trend this week, with experts stating that an element of surprise may be needed for any significant fluctuations. Despite remaining almost unchanged at $2,326 an ounce at the end of last week’s trading session, gold prices have seen a 4% increase in the second quarter, marking three consecutive quarters of growth.

Last week’s market was characterized by high volatility, with significant fluctuations in prices. After reaching a 2-week low at $2,297, the price quickly reversed to $2,328 the following day. Factors such as US inflation data, USD prices, and US government bond yields continue to impact precious metal prices.

A survey conducted by Kitco News with bank managers, analysts, and investors revealed uncertainty regarding the trend of gold prices next week. 50% of respondents chose to stay out of the market and observe while 17% predicted a price decrease and 33% expected an increase.

While analysts like Alex Kuptsikevich from FxPro express pessimism about the market due to the price falling below the 50-day moving average, other experts like Marc Chandler from Bannockburn Global Forex believe that the market may continue to rise based on recent rebound trends. Weak economic data and a dovish stance from the Fed are seen as challenges that could trigger a sell-off but other factors such as geopolitical tensions and upcoming data releases will also influence market movements.

Looking ahead traders are expecting thin trading volume this week as investors adopt a cautious approach. Geopolitical tensions and upcoming data releases including the June employment report and production index will likely influence market movements. Additionally,