Gold’s Roller‑Coaster: From Streak to Stutter
Gold slid to about $2,858 an ounce last week. The smack‑down came as inflation numbers showed a twisty picture and the U.S. dollar kept stepping on the gas, fueled by chatter that the Fed’s hawk‑eyes are still on the watch.
The Week That Broke the Streak
- Gold’s eight‑week win streak came to an abrupt halt on Friday.
- At the same time, the core PCE price index hit 0.3% month‑over‑month and 2.6% year‑over‑year.
- Month‑to‑month it crept up a bit, but year‑to‑year it slipped, leaving the market cool‑tipped but not convinced the Fed will flip the switch.
The U.S. dollar index kicked up 0.94% to 107.55, and with inflation still doing the “meh” dance, it’s looking set to keep the dollar on the upward swing. That means more pressure on gold, which usually loves a weak dollar.
Political Grit and Gold’s Reacts
Friday’s headline wasn’t just numbers— it was a tense showdown between U.S. and Ukrainian leaders. If they’d sealed a mining pact, investors might have felt the war‑fighting spark turning into peace fireworks, making gold’s safe‑haven sell‑off optional.
Instead, the Oval Office meeting fizzled. No agreement means fears of U.S.–Ukraine friction returning, which could choke the Russia‑Ukraine peace train. As a result, gold got a spontaneous lift back toward the end of the session.
What Analysts Are Saying
Kitco News polled 14 analysts this week:
- Only 3 (21%) see gold climbing.
- 9 (64%) expect a drop.
- 2 (14%) predict a stand‑still.
In short: the weight of economic gloom, trade tensions, and geopolitical jitters make gold a tempting insurance policy.
What’s Next? Payroll and Job Numbers
The week’s main buzz will revolve around U.S. non‑farm payrolls and employment figures— the kind of data that can fling markets up or down in the short term.
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