What Moves Gold? Key Drivers Behind Price Fluctuations in the Precious Metals Market

Credit: Kitco News

Last week, the gold market's trajectory was heavily influenced by inflation data. Following the release of higher-than-expected CPI figures for January on Tuesday morning, spot gold experienced a significant drop from nearly $2,030 per ounce to $1,991 within just 90 minutes. Despite minor fluctuations, prices mostly remained around the $2,000 threshold until a slight selloff followed by a modest rebound on Friday morning after the PPI release.

Despite diverging views between retail investors, who foresee potential gains, and analysts, who predict a decline, prices edged upward steadily leading in the President’s Day long weekend.

In the latest Kitco News Weekly Gold Survey, a notable disparity emerged between Wall Street and Main Street regarding their outlook on gold prices. Retail investors are optimistic, foreseeing potential gains in the coming week, while analysts anticipate a decline in precious metal prices.