Gold trended upward this week, with prices rising over 1% as Federal Reserve chair Jerome Powell signaled on Friday that the central bank will maintain its 2% inflation target and isn’t looking to cut rates any time soon. The latest Kitco News Weekly Gold Survey shows that most retail investors expect gold prices to post gains during the week ending September 1. Meanwhile, market analysts remain cautious and evenly divided as they head into the last week of August.
Predictions from Experts
Adrian Day, President of Adrian Day Asset Management, foretold gold’s downward move on Friday, and he sees the precious metal heading lower next week as well. On the other hand, James Stanley, senior market strategist at Forex.com, sees the precious metal continuing its gains next week. Stanley said the technical picture is looking more bullish for gold.
This week, 12 Wall Street analysts participated in the Kitco News Gold Survey, and they were evenly split on gold’s direction. Five experts, or 42%, expected to see higher gold prices next week, while another five analysts, or 42%, predicted a drop in price. Two analysts, or 17%, were neutral on gold for the coming week. Meanwhile, 559 votes were cast in online polls. Of these, 388 respondents, or 69%, looked for gold to rise next week, 114, or 20%, expect it will be lower, and 57 voters, or 10%, were neutral in the near term.
Economic Data Releases
The coming week will see a raft of significant economic data releases, including job openings, ADP employment and nonfarm payrolls, which will give markets a deep look into the U.S. employment picture. The revised Q2 GDP will also be released, along with the PCE index and ISM manufacturing, which should help investors confirm the Fed’s likely interest rate trajectory as it attempts to balance inflation and growth risks.
Despite the divided opinions among experts and analysts, gold prices have shown strength and upward momentum. The stable central bank policies, along with the upcoming economic data releases, create an uncertain environment for gold, but there is a possibility of further gains. Investors will closely monitor the developments in the market and the decisions of the central banks to determine the future direction of gold prices.