29/03/2024: This Week in Gold with Market Updates:
Price Action:
Gold Price:
Gold closed the previous week 3% higher, marking a strong uptrend in its price.
Gold commenced the week with an opening price of $2,165 per ounce, edging up slightly to close at $2,172. The market appeared to be cautiously optimistic, with investors monitoring key economic indicators and awaiting significant events later in the week.
On Tuesday, gold continued on its upward trajectory, moving $7 higher to close the day at $2,179, indicating a gradual but steady increase in price. Market sentiment remained positive, with investors closely observing developments in the global economy.
On Wednesday, gold prices surged further and ultimately closed the day at $2,195. This substantial gain reflected growing investor confidence and anticipation surrounding upcoming market-moving events such as the potential of interest rate cuts.
Bullish momentum continued into Thursday and price posted new all-time highs in the process. Gold printed higher highs and higher lows, consistently moving higher throughout the day. Price surged 1.7% to close the day, and week, at $2,233 an ounce. The market was buoyed by factors such as geopolitical tensions and economic uncertainty, driving demand for safe-haven assets like gold.
Gold markets were closed for Good Friday, allowing investors to reflect on the week’s developments and prepare for potential shifts in market dynamics. Price finished the week 3.04% higher and was gold’s second consecutive weekly finish in the green.
Silver Price:
Silver experienced mixed performance throughout the week.
On Monday, silver opened at $24.68 per ounce and maintained the same price level at market close, indicating a lack of significant movement in price.
On Tuesday, the price of silver dipped slightly, closing at $24.46 per ounce.
Silver prices rebounded on Wednesday, opening at $24.46 and closing at $24.65.
On Thursday, silver continued its upward trend, moving $0.32 to the upside to close the day at $24.97 per ounce. Despite earlier volatility, silver managed to end the week on a positive note.
Similarly to gold, markets were closed on Good Friday. Price closed the week 1.2% higher.
Tuesday, 26th of March: U.S. Consumer Confidence:
The U.S. Consumer Confidence index came in at 104.7, falling short of expectations. This lower-than-anticipated figure may suggest weakening consumer sentiment and affects gold to the upside, as investors seek safe-haven assets in uncertain economic environments.
Thursday, 28th of March: U.K. and U.S. GDP, Initial Jobless Claims:
U.K. GDP (QoQ) for Q4 met expectations, with a slight improvement compared to the previous month. Conversely, U.S. GDP (QoQ) for Q4 exceeded forecasts, albeit at a lower rate than the previous reading. These GDP readings reflect the economic performance of respective countries and may influence investor sentiment towards gold. As readings were generally robust, the expectation would be for gold and silver markets to be affected to the downside. However, price stayed resilient and moved even higher.
Thursday’s release of Initial Jobless Claims revealed a decline to 210,000, surpassing expectations. This positive data point may signal a strengthening labour market, potentially dampening demand for safe-haven assets like gold as investors exhibit greater risk appetite.
Friday, 29th Friday: Personal Consumption Expenditure Data:
Core PCE remained steady at 2.8% year-on-year, in line with expectations. This moderate inflation rate could impact gold prices, as it suggests a balanced economic environment that may influence central bank policies and investor behaviour.
FED Chair Powell Speech:
Federal Reserve Chair, Jerome Powell, spoke on Friday afternoon and reiterated that the FED does not need to be in a hurry to cut rates. This could cause gold to fall initially when markets reopen as it may be a slightly more hawkish stance than expected. However, the FED is still set on cutting interest rates multiple times this year, a policy that will cause gold to move higher.
