What are the current gold market settlements and upcoming activity?

““Steady as she goes”: That was this week’s gold market.

Since benign inflation data over the past three days suggested the Federal Reserve might step back sooner than expected from using its rate cudgel, gold has practically tip-toed up – even as other commodities led by oil have blazed higher. Silver, which normally takes its cue from gold, has also left its more lustrous cousin in the shadows with sharp gains this week.

The front-month August gold contract on New York’s Comex did a final trade of $1,959.30 an ounce on Friday after officially settling the session at $1964.40, up just 60 cents on the day. In the previous session it did a little better, rising $2 to strike a three-week high of $1,968.50 from a three-month bottom of $1,900.60 a week ago.

The spot price of gold, which reflects physical trades in bullion and is more closely followed than futures by some traders, settled at $1,955.47, down $5.02, or 0.3%.

“Gold has stalled [at] around $1,960 after surging in the aftermath of the US inflation data earlier this week,” said Erlam of online trading platform OANDA. “Now it’s a question of whether what we’re seeing is a corrective move as part of the downturn since May or if that downturn was in fact the correction.”

Gold’s ever-slow move higher has surprised many, especially after the Labor Department reported on Wednesday that the Consumer Price Index, or CPI, grew by just 3% year-on-year in June versus a 40-year high of 9.1% a year ago. The Producer Price Index, or PPI, which came on the heels of the CPI, was also lower than expected.

Notwithstanding those, the University of Michigan said on Friday its closely-watched Consumer Sentiment survey showed the spending appetite of Americans at its highest in two years, a development economists said wouldn’t be too encouraging for the Fed, which wishes to see a greater retreat in inflation.

All eyes are now on the Fed and what it will do to rates when its policy-makers sit again on July 26 to decide on rates. While the so-called Federal Open Market Committee of the Fed decided to pass on a hike last month, economists think in all likelihood it will vote for a 25-basis point increase this time, in keeping with its recent pace of hikes.

Gold: Price Outlook

This week, the 100-day SMA of $1,953 and the 50-day EMA of $1,945 are likely to act as support areas for spot gold, which if broken, can push prices down towards the $1,938-$1,935 support zone, said SKCharting’s Dixit. “This area is a turning point with risk of deeper correction reaching $1,927-$1,915.

“All things being equal, stability above $1,953-$1,945 will keep chances valid for a resumption of the uptrend which needs a retest of the $1,963-$1,965 horizontal resistance zone, followed by a decisive breakout above, for the next leg higher of $1,975 and the previous month’s high of $1,983.””