Gold Price Remains Stable Amid Volatility
The price of gold remained relatively stable over the past week, despite some volatility in its movements. Spot gold started the week at $4,051.51 per ounce and peaked at $4,119.82 on Thursday after softer inflation data helped ease rate-hike concerns. However, a slightly hotter-than-expected Employment Cost Index pushed Treasury yields up and pressured gold into the close.
The latest Kitco News Weekly Gold Survey showed that Wall Street is evenly divided between bulls, bears, and those on the fence, while Main Street sentiment has turned bearish after another failed breakout attempt. Some analysts, such as James Stanley of Forex.com, remain bullish on gold, citing its ability to hold above $4,000 despite rising Treasury yields.
On the other hand, Bob Haberkorn of StoneX Group is very bullish on gold and silver, but expects one more break lower before the rally resumes. He believes that a rate hike in September is unlikely, given the Fed's current stance, and that the Iran war will continue to put pressure on metals.
Haberkorn also thinks that gold needs a washout to $3,800 before it can regain its footing and show support, but sees metals trending lower in the near term due to rising energy prices. However, he is willing to adjust his strategy if gold breaks out of its current channel and moves higher.