Breaking News

Gold / Silver / Copper futures - Weekly outlook: April 29 - May 3

CommoditiesApr 28, 2013 06:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Investing.com - Gold futures rose to a two-week high early Friday, before trimming gains to end little changed as investors booked profits ahead of the weekend and as some chart-based selling set in after prices failed to break above a key resistance level.

Prices remained supported amid ongoing indications of strong physical demand for the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were flat on Friday to settle the week at USD1,461.75 a troy ounce.

Earlier in the session, Comex gold rose to a session high of USD1,484.75 a troy ounce, the strongest level since April 15.

Gold prices were likely to find support at USD1,403.75 a troy ounce, the low from April 22 and near-term resistance at USD1,484.75, Friday’s high.

Despite Friday’s lackluster performance, gold futures rallied 4% on the week, the biggest weekly advance in three months.

Gold prices rose to the highest levels of the day after data showed that the U.S. economy grew less-than-forecast in the first quarter, underling expectations that the Federal Reserve will keep its loose monetary policy in place for the indefinite future.

The Commerce Department said U.S. gross domestic product expanded by 2.5% in the three months to March, missing expectations for growth of 3.0%.

But prices turned suddenly lower as some technical selling set in towards the end of the session, after futures failed to break above the USD1,485-level, triggering fresh sell orders amid bearish chart signals.

Indications of surging physical demand in the U.S. and Asia helped contribute to gains earlier in the week.

The U.S. Mint has sold 208,500 troy ounces of gold coins so far in April, the highest since December 2009 and up more three-fold from the 62,000 troy ounces the Mint had sold in all of March.

Buying interest also improved significantly in top consumers India and China, according to local bullion dealers.

Reports of central bank buying also benefitted sentiment. Russia, Turkey and Kazakhstan all added to their gold reserves in March, according to International Monetary Fund data released earlier in the week.

Comex gold fell to a 27-month low of USD1,322.25 an ounce on April 16. Since then, the yellow metal has climbed nearly 10% as investors returned to the market to seek cheap valuations.

Prices of the precious metal are still down almost 24% since hitting an all-time high of USD1,920.80 an ounce in September 2011, sparking fears that gold’s bull run is coming to an end.

In the week ahead, gold traders will be focusing on Wednesday’s Federal Reserve policy statement, for further hints regarding the future of the central bank’s monetary easing program.

Investors will be also be watching Friday’s U.S. data on non-farm payrolls, as they attempt to gauge the strength of the U.S. economy.

Any improvement in the U.S. economy could scale back expectations for further easing from the Fed.

Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank could bring quantitative easing, one of the biggest boosts to gold’s bull run, to an end this year.

Elsewhere on the Comex, silver for May delivery shed 0.8% on Friday to settle the week at USD23.94 a troy ounce. Despite Friday’s downbeat performance, silver future prices rose 3.15% on the week.

Comex silver rose to a session high of USD24.78 a troy ounce on Friday, before turning sharply lower after futures failed to break above resistance at the USD24.84-level.

Meanwhile, copper for May delivery tumbled 1.8% on Friday to close the week at USD3.180 a pound. The industrial metal came under pressure following the release of the disappointing U.S. GDP data.

Despite Friday’s heavy losses, Comex copper prices rose 1% on the week as investors close out recent bets prices will move lower, a move known as short covering.

Prices of the red metal are still down almost 20% since hitting a recent high of USD3.978 a pound hit in February 2012, meeting the standard for a bear market.

Gold / Silver / Copper futures - Weekly outlook: April 29 - May 3

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email