Analyst: Next Week's Gold Trend Highly Dependent on Data, Beware of Flash Crash Risk

BlockBeats News, June 20th – Market analysts stated that gold is expected to continue its range-bound trading next week as investors await the release of the US Core Personal Consumption Expenditures (Core PCE) Price Index to gather clues on the Federal Reserve's interest rate path. Stephen Innes, Managing Partner at SPI Asset Management, said: "With the Fed appearing more data-dependent and increasingly sensitive to upcoming inflation data, the release of each key economic data point will have an impact, but the Core PCE will be the key event for the gold and rate markets, with next week highly data-dependent."

Innes also noted that if the inflation reading comes in stronger than expected, it could boost the dollar, lift yields, and increase the risk of a gold price test of the $4,000 per ounce level. Gold investors should be prepared for heightened volatility and beware of potential further sell-offs. (FXStreet)