Last week, global gold prices experienced significant volatility due to unease over US and Israeli airstrikes on Iran. The precious metal opened trading around 5,300 USD per ounce, surged to a high of 5,400 USD, and closed at 5,171 USD, as the market weighed the potential implications of a widening conflict in the Middle East.
Overall, spot gold fell by nearly 3,7% for the week, ending a four-week consecutive rally.
Kitco's latest survey of 18 Wall Street analysts indicates that upcoming movements could be unpredictable. Only half, or 9 experts, maintained an optimistic outlook for this week. Meanwhile, 4 analysts (22%) predicted a price decline, and 5 analysts believed short-term risks were relatively balanced.
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Gold price forecast for the week of 9-13/3. Source: Kitco |
Rich Checkan, President and CEO of Asset Strategies International, believes gold prices will be volatile. "After a week of investors trying to analyze the impact of the conflict in Iran on gold prices, I see them gradually returning to the market", he stated.
Jesse Colombo, co-founder of BubbleBubble Report, acknowledged that the precious metal recently faced profit-taking pressure. Traders withdrew funds from profitable positions to offset losses in other markets following the Iran shock, amidst a strong US dollar index. However, he contended that "gold remains in a relatively strong position".
Similarly, Adrian Day, President of Adrian Day Asset Management, predicted a gold recovery. According to him, if the situation in Iran deteriorates, another price surge could occur.
Conversely, Marc Chandler, CEO of Bannockburn Global Forex, commented that the Middle East conflict does not benefit gold. He forecasted that if the price breaks the 5,000 USD mark, it could drop to the 4,850 USD range.
This forecast was supported by Alex Kuptsikevich, a senior market analyst at FxPro. According to him, there is a high probability that gold will return to the 4,900 USD level and decline further in the coming weeks. "Despite increasing demand for safe-haven assets, gold still fell sharply last week, amidst high supply at current price levels", he pointed out.
This week, in addition to the Middle East conflict, traders are anticipating several key US economic data points, including inflation and growth indicators. The consumer price index (CPI) report for February will be released on 11/3. Two days later, the country will release preliminary QIV GDP data, the personal consumption expenditure (PCE) index, and the consumer sentiment survey for March.
By Phien An (according to Kitco)
