The world gold market this week recorded many big fluctuations, when it reached a historical peak of 2,531 USD on August 20. After that, the precious metal turned down, then rebounded to 2,512 USD at the end of the week, when the US Federal Reserve (Fed) Jerome Powell commented that "it is time" to cut interest rates.

Next week, investor sentiment remains optimistic. Kitco's survey of bank directors, analysts, and investment specialists showed that 58% predict that gold prices will increase. Only 17% bet on a decrease and 25% expect it to remain unchanged.

Gold prices have been rising steadily over the past year. Chart: Reuters

Kevin Grady, president of Phoenix Futures and Options, said the market is focused on the possibility of the Fed cutting interest rates. And for good reason.

"Everyone is talking about a rate cut. Right now, the probability of the Fed cutting by 50 basis points (0.5%), instead of 25 basis points, is 55%. Central banks are also buying. The current environment is very favorable for gold prices to reach new highs," he said. Grady predicted that the precious metal will fluctuate around $2,500 until the Fed's September policy meeting.

Kitco senior analyst Jim Wyckoff also said that technical charts and fundamentals are supporting gold prices. "The market will go up, when the technical analysis and fundamentals are overall positive," he explained.

Meanwhile, Bannockburn Global Forex CEO Marc Chandler said that gold has entered a correction phase after hitting a historic peak this week. "The US dollar and US government bond yields could rise next week, putting pressure on the precious metal. The support level could be in the range of $2,460-2,470 an ounce," he predicted.

Darin Newsom, senior market analyst at Barchart.com, also sees gold prices trending lower in the coming days. "I keep my expectations for another week, as the short-term trend of gold for December delivery is down. Next week's price could be $2,493," he said.

Next week, the US economy will receive many important data, which could impact the precious metal. That includes the July Personal Consumption Expenditures Price Index (PCE) - the Fed's preferred inflation gauge, the US second-quarter GDP... Several senior Fed officials, such as Christopher Waller and Raphael Bostic, will give speeches that investors are interested in.

Hà Thu (according to Kitco, Reuters)