Gold Prices Rebound from Recent Lows Ahead of Key Economic Data

The gold market experienced significant fluctuations last week, driven by changes in investor sentiment and economic data. Spot gold prices began at around $4,618.79 per ounce on Sunday evening but rose to a weekly peak of $4,697.66 on Tuesday as investors assessed the impact of the US Treasury bond repurchase plan.

However, the upward trend weakened from Wednesday morning, with core PCE inflation data and Q2 GDP showing that the US economy maintained its resilience while inflationary pressure remained high. This caused bond yields to rise, leading gold prices to fall below $4,600 per ounce.

The selling pressure intensified on Thursday as expectations of a Federal Reserve interest rate hike increased, causing the USD to strengthen and short-term US Treasury bond yields to rise. These unfavorable factors for gold led to a sharp decline in spot gold prices, which fell to $4,566.17 per ounce.

Despite this, buying pressure returned on Friday, bringing gold prices back up to $4,631.98 per ounce before the Fed Chairman's speech at Jackson Hole turned market sentiment negative, causing gold prices to fall more than 1% in just a few hours and finally closing at $4,445.4 per ounce.