Mixed Outlook for Precious Metal Prices: Experts Urge Caution in Trading This Week

Precious metal prices this week are expected to lack a clear trend, with experts stating that an element of surprise may be needed for any significant fluctuations. Despite the uncertainty, spot gold prices have seen consistent growth over the past three quarters, with a 4% increase in the second quarter.

Last week’s trading session saw high volatility in precious metal prices, with significant fluctuations in value. Prices quickly reversed from a 2-week low at $2,297 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 that uncertainty surrounds the trend of gold prices next week. Of those surveyed, 50% chose to stay out of the market and observe while 17% predicted a price decrease and 33% expected an increase.

Analysts like Alex Kuptsikevich from FxPro express pessimism about the market due to gold falling below the 50-day moving average. Weak economic data and a dovish stance from the Fed are seen as challenges that could trigger a sell-off. However, other experts like Marc Chandler from Bannockburn Global Forex believe that recent rebound trends suggest that the market may continue to rise.

Looking ahead, traders expect thin trading volume this week as investors adopt a cautious approach due to geopolitical tensions and upcoming data releases like the June employment report and production index. Additionally, the US financial market will be closed on July 4th for National Day holiday which could also influence market movements.

In conclusion, while there is uncertainty surrounding precious metal prices this week, experts believe unexpected events may be needed for significant fluctuations in the market. Economic data, geopolitical tensions and monetary policy decisions will continue to impact precious metals in