Gold fell deeply at the end of the week, the downtrend continuedWorld gold prices tend to recover with spot gold increasing by 2.3 USD compared to last week's closing level to 2,294.9 USD/ounce.
The gold market this week is forecast to have many fluctuations and the direction of this precious metal depends heavily on the consumer price index (CPI) report and the interest rate decision of the US Federal Reserve (Fed). ) and a speech from the head of the world's most powerful central bank.
Last week, the market witnessed a strong sell-off when receiving two unfavorable information. Gold lost up to 80 USD during the day, recording the strongest intraday decline in 4 years. Specifically, the price reversed when the latest report showed that the People's Bank of China did not add gold last month, cutting off this central bank's 18-month gold buying streak. The report raises concerns that gold demand will slow down in the near future.
While the market is gradually stabilizing, expectations that the Fed will raise interest rates in September are gradually fading after the US Department of Labor's employment report dealt another strong blow to the market.
The Fed started the fight against inflation from March 2022 with interest rate increases. In this way, the US Central Bank wants to slow down economic growth and reduce inflationary pressure, with the goal of bringing inflation down to 2%. Recent inflation reports show that inflation is currently at 2.7%.
