Analyst: Next week's gold trend heavily depends on data; beware of downside risk.

BlockBeats News, June 20 — Market analysts expect gold to remain volatile next week as investors await the release of the U.S. Core Personal Consumption Expenditures (Core PCE) Price Index, seeking clues on the Federal Reserve's interest rate path. Stephen Innes, Managing Partner at SPI Asset Management, said: "As the Federal Reserve appears to be more adaptable to changing circumstances and increasingly sensitive to upcoming inflation data, the release of each major economic indicator will have an impact. However, the Core PCE will be a key event for gold and interest rate markets, and next week will heavily depend on the data."

Innes also stated that if inflation readings come in stronger than expected, it could boost the dollar, push up yields, and increase the risk of gold testing the $4,000 per ounce level. Gold investors should prepare for increased volatility and be cautious of potential further declines. (Jin10)