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Gold / Silver / Copper futures - weekly outlook: June 15 - 19

Published 06/14/2015, 08:07 AM
Updated 06/14/2015, 08:07 AM
© Reuters.  Gold post first weekly gains in almost a month with Fed in focus

© Reuters. Gold post first weekly gains in almost a month with Fed in focus

Investing.com - Gold futures ended the day little changed on Friday, but notched up the first weekly gains in almost a month amid uncertainty over when the Federal Reserve could start to raise interest rates.

Gold futures for August delivery closed at $1,180.9 a troy ounce on the Comex division of the New York Mercantile Exchange, off lows of $1,176.1. For the week, the contract rose 0.87%.

Elsewhere in metals trading, silver futures for July delivery ended Friday's session down 0.25% at $15.92 a troy ounce, bringing the week’s losses to 0.46%.

Copper for July delivery rose to $2.681 a pound late Friday but still ended the week down 0.75%.

The dollar ended the week lower against the other major currencies, following steep losses against the yen earlier in the week.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 94.98 late Friday, flat for the day. The index ended the week down 1.42%, the second straight weekly decline.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

Gold’s gain were held in check after data on Friday showed that U.S. consumer confidence improved in June as signs that the labor market is strengthening spurred expectations for wage gains.

The preliminary reading of the University of Michigan's consumer sentiment index rose to 94.6 this month from 90.7 in May.

Another report showed that the U.S. producer price index rose 0.5% in May, the largest increase since September 2012.

The data came after other economic reports earlier in the week, including on retail sales, underlined the view that the economy is regaining momentum in the current quarter after a lackluster first quarter.

But the greenback remained under pressure amid concerns that the Fed won’t offer additional information on its monetary policy plans following its upcoming meeting on Tuesday and Wednesday.

Safe haven demand for gold continued to be underpinned by concerns over Greece’s deadlocked debt talks, with time running out to reach cash-for reforms deal before the end of the month.

The International Monetary Fund said Thursday it was stopping negotiations with Greece due to a lack of progress.

On Friday the Wall Street Journal reported that senior European Union officials had formally discussed a possible Greek debt default for the first time.

In the week ahead, Greece’s debt talks are likely to remain in focus. Investors will also be looking ahead to Wednesday’s Fed rate statement for a clear signal on when it could start to raise interest rates.

Monetary policy announcements in Japan and Switzerland will also be closely watched.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 15

Switzerland is to release data on producer prices and retail sales.

European Central Bank President Mario Draghi is to testify before the European Parliament's Economic and Monetary Affairs Committee, in Brussels.

Canada is to publish a report on manufacturing sales.

The U.S. is to publish data on industrial production and manufacturing activity in the New York region.

Tuesday, June 16

The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting, giving investors insight into how officials view the economy and their policy options.

The U.K. is to release data on consumer price inflation.

In the euro zone, the ZEW Institute is to report on German economic sentiment.

The U.S. is to release data on building permits and housing starts.

Wednesday, June 17

New Zealand is to publish data on the current account.

Japan is to produce a report on the trade balance.

The U.K. is to publish its latest employment report. In addition, the Bank of England is to publish the minutes of its June meeting.

Canada is to report on wholesale sales.

Later Wednesday, the Fed is to announce its monetary policy decision and hold a press conference, which will be closely watched for fresh indications on the possible timing of rate hikes.

Thursday, June 18

New Zealand is to release data on gross domestic product.

Switzerland is to publish data on the trade balance.

The Swiss National Bank is to announce its Libor rate and publish its monetary policy assessment. The rate announcement is to be followed by a press conference.

The U.K. is to release data on retail sales.

Later in the day, the U.S. is to release a string of data, including reports on consumer prices, initial jobless claims and manufacturing activity in the Philadelphia region.

Friday, June 19

The Bank of Japan is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.

The U.K. is to release a report on public sector borrowing.

Canada is to round up the week with data on consumer inflation and retail sales.

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