Gold Posted a Stellar Week. What Next?

SEATTLE (Scrap Monster): The World Gold Council (WGC) published the latest Weekly Marlets Monitor report.

The report noted that worries over Fed independence and uneven global economic momentum dominated the previous week. The U.S. increased its growth estimate for Q2. The growth of the EU market and inflation remained inconsistent. While India's GDP growth saw a strong acceleration, the Chinese PMI saw a slight gain, staying below the 50 mark.

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The price of gold rose sharply last week. This was mostly due to the largest inflows into gold-backed exchange-traded funds (ETFs) since mid-April and growing investor wagers on a possible rate drop by the U.S. Fed.

Last week, the LBMA Gold Price PM increased 2.8% to US$3,429/oz. The yellow metal's year-to-date returns increased to 31.4%. It appears that gold is at last validating a "triangle" continuation pattern. According to the WGC assessment, gold's price movement suggests that its long-term upward trend may be about to resume.

In the future, investor mood is probably going to be influenced by US economic and employment market announcements. Improvements in non-farm payrolls or ISM PMIs, for example, may lessen investors' need for gold as a safe haven.