GOLD ending the most volatile week in over 3 years
Last week saw gold prices skyrocket, setting a new record of 2,149 USD. However, this price does not last long.
Closing the weekly trading session, world gold price stood at 2,004 USD/ounce, down sharply to 68 USD/ounce compared to last week's closing session. Last week saw gold prices skyrocket, setting a new record of 2,149 USD. However, this price does not last long. Precious metal prices turned around and continuously plummeted, sometimes dropping to only 1,995 USD/ounce. With a fluctuation of 154 USD this week, the gold market witnessed the strongest weekly fluctuation since mid-August 2020.
The employment data released this weekend is like "pouring cold water" on interest rate cut expectations. The number of jobs increased higher than expected combined with the falling unemployment rate, causing the market to postpone expectations of interest rate cuts to May, instead of March as before.
It is forecasted that gold will see some downward price pressure next week. After Friday's jobs report, it's unlikely Fed Chairman Jerome Powell will change his hawkish stance, even if the central bank is expected to leave interest rates unchanged.
Despite the positive long-term outlook, gold is susceptible to bad news. Gold may fall below 2,000 USD/ounce, to the support level of about 1,975 USD/ounce.
Closing the weekly trading session, world gold price stood at 2,004 USD/ounce, down sharply to 68 USD/ounce compared to last week's closing session. Last week saw gold prices skyrocket, setting a new record of 2,149 USD. However, this price does not last long. Precious metal prices turned around and continuously plummeted, sometimes dropping to only 1,995 USD/ounce. With a fluctuation of 154 USD this week, the gold market witnessed the strongest weekly fluctuation since mid-August 2020.
The employment data released this weekend is like "pouring cold water" on interest rate cut expectations. The number of jobs increased higher than expected combined with the falling unemployment rate, causing the market to postpone expectations of interest rate cuts to May, instead of March as before.
It is forecasted that gold will see some downward price pressure next week. After Friday's jobs report, it's unlikely Fed Chairman Jerome Powell will change his hawkish stance, even if the central bank is expected to leave interest rates unchanged.
Despite the positive long-term outlook, gold is susceptible to bad news. Gold may fall below 2,000 USD/ounce, to the support level of about 1,975 USD/ounce.
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