Gold Price News: Gold Finishes Week Above $2,400 An Ounce

Gold prices were little changed on Friday, albeit with some intra-day volatility, rounding the week off at a level close to their recent highs.

Prices made steady losses overnight and into the morning session in Europe on Friday, drifting as low as $2,392 an ounce at one point before rebounding into the afternoon session to trade at $2,417 an ounce by Friday afternoon. That compared with around $2,413 an ounce in late trades on Thursday.

The latest action means gold prices have managed to hold onto the hefty gains seen on Thursday, which were triggered by weaker than expected US inflation figures for June, which helped to cement expectations that the US Fed will go ahead with interest rate cuts in September.

US core producer prices rose by 0.4% in June, according to figures released Friday, slightly above the market’s expected 0.2%. While the figure was notionally bearish for gold prices, the market appeared to react to the Michigan consumer sentiment figures for July, which fell for a fourth straight month and gave the lowest reading since November 2023. The figures highlight that consumers are still concerned about the economic outlook, and helped to underpin the growing acceptance that rate cuts are imminent in the autumn.

Looking ahead, Monday will provide an opportunity for further economic clues in a speech by US Fed chair Jerome Powell, while Tuesday will see US retail sales figures for June.

Looking at the six-month gold price chart, prices have been relatively stable in a horizontal channel between $2,280 and $2,450 an ounce since April, following sharp gains in February and March. Strong buying at below $2,300 an ounce has provided a support base, raising the prospect of an upside breakout, although this may depend on ongoing strong demand from central banks and retail investors.

Future gold price direction will be influenced by a number of factors including interest rates, geopolitical conditions, concerns over public debt and confidence in fiat currencies.