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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.<\/p>\n\n\n\n
US core producer prices rose by 0.4% in June, according to figures released Friday, slightly above the market\u2019s 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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\t\t\t