International gold prices are expected to head back toward the $5,000-per-ounce mark in the coming weeks as traders eye the commodities market and precious metal deals to take another hit.
Spot gold slipped 0.5 percent to $4,643 per ounce on Wednesday after prices reached their highest level since mid-May earlier this week.
US gold futures stayed at $4,700.70 to end the day.
The recent rally has strengthened expectations that gold could make another attempt at the psychologically terrifying $5,000 level. The metal has benefited from renewed demand for safe-haven assets.
Markets are now focused on the future of trade routes in the Gulf as inflation hits critical businesses.
The upcoming US Federal Reserve Chairman Kevin Warsh’s speech on Friday could also provide additional direction for gold.
Gold could also receive support if concerns over the sustainability of US government finances intensify.
With gold already trading close to record territory and several major market catalysts approaching, the metal’s next move could depend heavily on the inflation data and the Fed’s policy signals.
If those developments reinforce expectations for easier monetary policy, gold could regain momentum toward the $5,000-per-ounce level in the near term.
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