2023-07-14 16:15:55 ET
Gold finished flat Friday but scored its biggest weekly gain since April, as economic data this week offered the most convincing evidence yet that inflation in the U.S. is starting to ease, prompting a bit of optimism that the Federal Reserve could soon end its interest rate hikes.
The June data showed consumer prices rose by 0.2%, the smallest increase since August 2021, and wholesale prices edged up by just 0.1%, which weighed on the dollar, as the ICE U.S. Dollar Index fell more than 2% this week after falling Thursday to its lowest since April 2022.
Some analysts say gold could climb back closer to the $2,000/oz mark if the Fed confirms a July interest rate hike would be its last in this cycle; but if the late-July FOMC meeting dashes hopes that peak rates are near, gold could unwind some of its recent gains.
Front-month Comex gold ( XAUUSD:CUR ) for July delivery closed +1.7% for the week to $1,960.10/oz, its third straight weekly gain and its best settlement since June 9, while July Comex silver ( XAGUSD:CUR ) ended +8.3% this week to $25.014/oz, also a third straight positive week and the highest settlement since May 10.
ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( SLV ), ( PSLV ), ( SIVR ), ( NYSEARCA: SIL ), ( SILJ ), ( SLVP )
Among this week's top performers: ( EXK ) +23.4% , ( HMY ) +19.1% , ( GFI ) +17.8% , ( AG ) +17.5% , ( NGD ) +17.3% , ( FSM ) +16% , ( CDE ) +15.5% , ( HL ) +15.2% , ( AU ) +12.9% , ( EGO ) +12.2% , ( PAAS ) +11.2% , ( IAG ) +11.1% , ( EQX ) +11% , ( AGI ) +10.2% , ( KGC ) +9% , ( AEM ) +9% , ( WPM ) +7.7% , ( NEM ) +7.4% .
CIBC Capital Markets raised its outlook for precious metals prices this week, lifting its gold price forecast to $1,960/oz from $1,800/oz and its silver price view to $24/oz from $23.50/oz.
More analysis on gold and silver:
- BRICS Gold Standard Is A Big Opportunity
- GDX: Crash Risks Rising As Cash Crunch Intensifies
- Silver Might Be The Best Way To Respond To Approaching Global Energy Crisis
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Gold tallies best week since April as dollar drops to lowest in more than a year