Breaking News

Gold / Silver / Copper Prices - Weekly Outlook: August 20 - 24

CommoditiesAug 19, 2018 06:13AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Strong dollar likely to remain a headwind for gold - Gold prices look likely to remain under pressure this week as a combination of a stronger dollar and higher Treasury yields make the precious metal less attractive to investors.

Gold has also struggled as its inverse relationship to the firmer dollar has outweighed safe haven demand.

On Wednesday investors will get the chance to parse through the minutes of the Federal Reserve’s August meeting, when it left interest rates unchanged and indicated that it remains on track for additional rate hikes this year.

Investors will be on the lookout for any tweaks to the Fed’s outlook on inflation, the economy and trade war fears.

On Friday, Jerome Powell is to make his first appearance as Fed chairman at the annual economic symposium in Jackson Hole. The conference will be closely scrutinized for clues to the monetary policy direction of some of the world’s most important central banks.

Geopolitical risks will also remain in focus this week, with the U.S. expected to impose fresh sanctions on Russia on Wednesday. On Thursday, Washington is expected to slap 25% tariffs on an additional $16 billion of Chinese imports, to which Beijing has threatened to retaliate in kind.

Gold futures pushed higher on Friday, but still ended the week down 2.86%, the largest weekly decline since early May 2017. December gold futures settled up 0.66% at $1,191.80 on the Comex division of the New York Mercantile Exchange.

On Thursday, prices settled at $1,176.20, the lowest level since early January 2017.

Gold gained ground as the dollar fell against a currency basket, retreating from a 13-month high hit earlier in the week as worries over trade tensions between the U.S. and China eased.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.50% at 96.00 late Friday, the largest one day decline in almost a month.

Market sentiment was boosted by news that Beijing is set to resume trade talks with Washington this week, although at a lower level than previously. It will be the first round of trade talks since June and could be a step towards easing trade tensions between the world’s two largest economies.

Gold prices are down around 10.8% so far this year, pressured lower by the stronger dollar and rising interest rates. Investors have also shunned the precious metal despite an escalation in global trade tensions, indicating that gold may be losing its safe haven status.

Elsewhere in precious metals trading, silver settled up 0.42% at $14.775 a troy ounce, for a weekly loss of 4.26%. Platinum settled at $788.10, 0.46% higher for the day, to end the week up 0.91%.

Among base metals, copper ended at $2.660, up 1.66% for the day, trimming its weekly loss to 3.95%.

Ahead of the coming week, has compiled a list of significant events likely to affect the markets.

Monday, August 20

Atlanta Fed President Raphael Bostic is to speak at an event in Tennessee.

Tuesday, August 21

The Reserve Bank of Australia is to publish the minutes of its latest policy setting meeting.

The UK is to report on public sector borrowing figures.

Wednesday, August 22

New Zealand is to report on retail sales.

Later in the day, Canada is to publish retail sales figures.

The U.S. is to produce data on existing home sales and the Fed is to publish the minutes of its August meeting.

Thursday, August 23

The euro zone is to release data on manufacturing and service sector activity.

The European Central Bank is to publish the minutes of its latest policy setting meeting.

Central bankers and economists are to gather in Jackson Hole, Wyoming for the first day of a three day event.

Friday, August 24

The U.S. is to release data on durable goods orders.

Fed Chairman Jerome Powell is to speak at the Jackson Hole Symposium.

Gold / Silver / Copper Prices - Weekly Outlook: August 20 - 24

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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 ?
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'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