Global gold prices attempted a rebound last week following tariff-related uncertainties the previous week. However, slightly higher US inflation and consumer price index data eroded expectations of a Federal Reserve (Fed) rate cut, making gold less attractive to investors. The week closed with gold trading at 3,334 USD per ounce, down 60 USD, or about 1.8%.

This week, according to a Kitco survey, most Wall Street experts predict the market will continue to move sideways, while individual investors and small and medium-sized businesses believe gold could rise.

A jeweler weighs gold jewelry in Ahmedabad, India, on 15/7. Photo: Reuters

A jeweler weighs gold jewelry in Ahmedabad, India, on 15/7. Photo: Reuters

Adrian Day, president of Adrian Day Asset Management, believes gold will continue to fluctuate within a range, with a stable upward trend. He added that the precious metal could break out if there are further monetary easing moves.

Colin Cieszynski, chief market strategist at SIA Wealth Management, remains neutral on gold prices. Investors are awaiting the annual central bank meeting on 21-23/8. The outcome of the meeting is likely to affect the US dollar, which in turn will influence gold. "But before this event takes place, I think the market could be quite quiet," Cieszynski said.

In contrast, James Stanley, senior market strategist at Forex.com, asserts that the precious metal will rise, even though central banks may express a tightening of monetary policy at the upcoming meeting.

Ole Hansen, head of commodity strategy at Saxo Bank, said rising inflation will not prevent the Fed from cutting interest rates. Rising input costs risk reducing manufacturers' profit margins or passing these costs on to consumers, putting further pressure on the consumer price index (CPI).

"However, the data does not change our long-held optimistic view on gold, as the Federal Open Market Committee (FOMC) will ultimately have to balance controlling inflation with supporting the economy," Hansen said. In the short term, he believes gold will remain around 3,350 USD per ounce.

Between now and the end of the year, analysts from ANZ Bank believe that macroeconomic and geopolitical risks will increase, boosting gold's appeal as a safe haven.

"The upward outlook for gold remains, supported by tariffs, a slowing global economy, looser US monetary policy, and a continued weakening US dollar," ANZ analysts said.

Bao Bao (according to Reuters, Kitco)