Wall Street experts are predicting a continued decline in gold prices for the upcoming week, following a disappointing trading week for the precious metal. The recent data indicating cooling inflation in the United States and falling Treasury yields provided only limited support, while rising tensions between the U.S. and Iran, along with increasing oil prices, continued to exert pressure on gold.

Gold opened the week at $4,108.18 per ounce but quickly faced pressure as tensions related to Iran escalated, pushing oil prices higher and raising concerns that energy inflation could lead the Federal Reserve to maintain a cautious stance. Gold briefly reached a weekly high of $4,122.63 per ounce on Monday, but this upward momentum quickly waned as the U.S. dollar remained strong and traders hesitated to increase their purchases of safe-haven assets.

The precious metal received some support on Tuesday after the U.S. Consumer Price Index (CPI) for June fell to 3.5%, lower than expected. This data helped ease concerns about the Fed potentially raising interest rates soon. However, gold's recovery stalled on Wednesday as the Producer Price Index (PPI) indicated ongoing inflationary pressures, keeping Treasury yields elevated and hindering gold's rebound.

Increased selling pressure emerged on Thursday after U.S. retail sales exceeded expectations, reinforcing views that the Fed would continue its tightening monetary policy. Meanwhile, renewed tensions between the U.S. and Iran pushed crude oil prices higher, raising inflation concerns further.

Gold prices fell below the $4,000 per ounce mark, hitting a weekly low of $3,959.37 per ounce on Friday. However, buying activity at lower prices provided a slight recovery, and gold closed the week at $4,017.30 per ounce, marking another week of decline for the precious metal.

Forecast for Next Week

A recent survey of 14 Wall Street experts revealed a strong consensus leaning towards a bearish outlook for gold prices. Only one expert, representing 7% of participants, predicted a price increase for the upcoming week. In contrast, 11 experts, accounting for 79%, expected further declines. The remaining two experts, or 14%, suggested that gold prices might remain stable.

In an online survey of individual investors, 169 votes were recorded, reflecting a cautious sentiment following another week of price declines. A total of 68 investors, or 40%, anticipated a rise in gold prices next week, while 61, representing 36%, expected a decrease. The remaining 40 investors, or 24%, believed the market would enter a consolidation phase.

Economic Data Impacting Gold Prices Next Week

Next week is expected to be relatively light in terms of significant economic data, which could make the market more sensitive to new information and geopolitical developments. Traders will have to wait until Thursday morning for a notable economic event when the European Central Bank (ECB) announces its monetary policy decision, followed by a press conference led by ECB President Christine Lagarde. The market currently anticipates that the ECB will maintain interest rates this month.

On the same day, the market will also receive the weekly report on initial jobless claims in the U.S. By Friday, traders will be watching the preliminary Purchasing Managers' Index (PMI) for July released by S&P Global, followed by the report on new home sales in the U.S. for June.