Despite strong economic data releases, gold prices surged higher this week as geopolitical risks and sovereign debt concerns dominated investor sentiment. Spot gold traded at $3,271 per ounce on Monday morning before rebounding to a weekly high of $3,365 per ounce on Wednesday.
Industry experts were divided on the outlook for gold prices, with some predicting a strong bull run and others warning of a pullback. Adam Button, head of currency strategy at Forexlive.com, said, “The relentless trend of dollar selling that dominated the first half of the year will benefit gold.” Rich Checkan, president and COO of Asset Strategies International, also predicted a rise in gold prices, citing concerns over overspending and debt.
On the other hand, Adrian Day, president of Adrian Day Asset Management, warned of a potential pullback due to tariff deals and speculation about a July Fed rate cut. Colin Cieszynski, chief market strategist at SIA Wealth Management, argued that the Federal Reserve is stuck between a rock and a hard place, with inflation concerns outweighing the need for rate cuts.
Despite these differing views, many experts agree that gold prices will continue to rise due to the collapsing value of the US dollar. Marc Chandler, managing director at Bannockburn Global Forex, pointed out that the euro, pound, yuan, Canadian dollar, and Aussie have all seen significant gains in the past six months, while gold has failed to keep pace.
As markets enter a breather period following the Fourth of July long weekend, investors will be watching for key economic data releases, including the Reserve Bank of Australia’s monetary policy decision and the Federal Reserve’s minutes from its June FOMC meeting. Sean Lusk, co-director of commercial hedging at Walsh Trading, warned that cutting interest rates may not have the desired effect on the economy.
Overall, gold prices remain volatile, with some experts predicting a pullback while others believe in a strong bull run. As the situation continues to unfold, investors will be watching for signs of stability and certainty in the market.
Source: https://www.kitco.com/news/article/2025-07-03/wall-street-fence-about-golds-direction-main-street-strengthens-its-bullish