Breaking News
0

Gold / Silver / Copper Prices - Weekly Outlook: December 10 - 14

CommoditiesDec 09, 2018 07:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - This week precious metals traders will get a fresh update on the health of the U.S. economy from data on retail sales and consumer prices amid speculation over whether the Federal Reserve may slow the pace of interest rate hikes next year.

Markets have dialed back expectations on the pace of Fed rate hikes in 2019 in the wake of recent market turmoil. Wall Street ended its worst week since March on Friday amid a selloff triggered by concerns over a slowing economy and mounting trade war fears.

Gold prices settled at their highest level since July on Friday and notched up the largest weekly gain since August as the market turmoil bolstered safe haven demand for the precious metal.

Gold futures were up 0.84% at $1,254.05 on the Comex division of the New York Mercantile Exchange late Friday, to end the week with a gain of 2.17%.

Data on Friday showed that the U.S. economy created fewer-than-forecast new jobs in November, while October’s figure was revised lower.

Wage growth rose in line with forecasts, keeping the Fed on track to hike interest rates this month. But the report indicated that the labor market may not be as strong as hoped, easing pressure on the Fed to keep hiking rates in 2019.

Fed Chairman Jerome Powell said last week that U.S. interest rates were nearing neutral levels, which markets interpreted as signaling a slowdown in rate rises.

The dollar ended lower against a currency basket on Friday, with the U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, slipping 0.12% to 96.65 for a weekly loss of 0.3%.

A weaker dollar can boost commodities priced in the greenback as it makes it cheaper to users of other currencies. Lower bond yields can also be a positive for commodities, which don’t offer a yield.

"Soft employment report reinforces the narrative that we have perhaps seen the highs in employment ... so I think a December hike is done but anything in 2019 is up in the air," said Tai Wong, head of metals trading at BMO.

“Interest rate futures IRPR suggested traders see not more than one rate increase from the Fed next year, compared with previous expectations for possibly two rate hikes. Increased volatility and geopolitical risk, macro asset allocation is becoming more gold-positive again while we believe much of the dollar's upward move is now behind us with rate hike expectations dropping," analysts at BMO Capital Markets said in a note.

Gold, which is considered a safe investment during times of financial, economic and geopolitical uncertainty, has recovered about 7% from 19-month lows hit in mid-August.

"At this point it looks like the price of gold has a strong foundation at these levels and should remain in a bullish mode the rest of the year," Walter Pehowich, executive vice president of investment services at Dillon Gage Metals, wrote in a note.

Elsewhere in metals trading, silver was up 1.35% to $14.705 a troy ounce, to end the week 3.37% higher, while copper ended at $2.748, up 0.18% for the day, paring the week’s losses to 1%.

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

Monday, December 10

The UK is to publish its monthly GDP report, along with data on manufacturing and industrial production.

Tuesday, December 11

The UK is to publish its latest employment report.

The ZEW Institute is to report on German economic sentiment.

The U.S. is to produce figures on producer price inflation.

The British parliament is to vote on Prime Minister Theresa May’s Brexit plan that she negotiated with Brussels.

Wednesday, December 12

The euro zone is to release data on industrial production.

The U.S. is to publish consumer price inflation figures.

Thursday, December 13

The Swiss National Bank is to announce its Libor rate and publish its monetary policy assessment.

The European Central Bank is to hold its final policy meeting of 2018, which will be followed by a press conference with President Mario Draghi.

The U.S. is to publish the weekly report on initial jobless claims.

Friday, December 14

China is to release data on industrial production and fixed asset investment.

The euro zone is to release data on private sector business activity.

The U.S. is to round up the week with data on retail sales.

-- Reuters contributed to this report

Gold / Silver / Copper Prices - Weekly Outlook: December 10 - 14
 

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.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
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.
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.
Comments
Marcus Walker
Marcus Walker Dec 11, 2018 9:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
very informative and helpful
Reply
0 0
Muhammad Shahbaz
Muhammad Shahbaz Dec 09, 2018 11:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good analysis
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
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
or
Sign up with Email