Gold looks good again next week as both Wall Street and Main Street turn bullish – by Ernest Hoffman (Kitco News – June 14, 2024)

(Kitco News) – After last week’s price action was dominated by Friday’s news from China and the employment report, precious metals markets were squarely focused on inflation data and the Federal Reserve’s interest rate path this week.

After kicking off the week trading at $2,293.70 per ounce during the Sunday evening Asian session, spot gold broke above the $2,300 level about two hours before the North American market open, and that level held throughout the rest of the week’s roller coaster ride.

Gold prices chopped along in a relatively narrow $15 channel as market participants waited for Wednesday, which would bring the consumer inflation report in the morning, then the FOMC rate announcement, updated economic projections, and Chair Powell’s press conference in the afternoon.

The CPI report finally shook the market out of its sideways trading, spiking spot gold from $2,313 per ounce just before the data release to its weekly high of $2,336.72 immediately afterward.

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