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Gold / Silver / Copper futures - weekly outlook: October 24 - 28

Published 23/10/2016, 11:23
© Reuters.  Gold ends almost flat as stronger dollar weighs
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Investing.com - Gold prices fluctuated between small gains and losses on Friday before ending almost flat as investors compared the effect of the stronger dollar and expectations for increased demand from India on the precious metal.

Gold for December delivery on the Comex division of the New York Mercantile Exchange ended down 45 cents or 0.04% at $1,267.05 a troy ounce.

Prices fell to lows of $1,261.50 earlier in the session.

The U.S. dollar index hit its highest levels since early February on Friday amid heightened expectations that the Federal Reserve will hike interest rates before the end of this year.

Investors currently price a 64% chance of a rate hike at the Fed's December meeting; according to federal funds futures tracked Investing.com's Fed Rate Monitor Tool.

Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.

But prices continued to be underpinned by expectations of increased seasonal demand from India as the festival season, when buying gold is considered auspicious, gets underway at the end of the month.

India and China are the largest physical buyers of the precious metal.

Also on the Comex, silver futures for December delivery settled at $17.53 a troy ounce.

Elsewhere in metals trading, copper for December delivery settled at $2.090 a pound.

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

Monday, October 24

Key euro zone members and the wider euro area are due to release flash PMIs for October.

In the U.S., New York Fed head William Dudley and St. Louis Fed chief James Bullard are to speak.

Tuesday, October 25

In the euro zone, the Ifo Institute is to report on German business climate.

The U.S. is to release private sector data on consumer confidence.

Bank of England Governor Mark Carney is due to testify about the economic consequences of the Brexit vote in London.

ECB President Mario Draghi is to speak at an event in Berlin.

Wednesday, October 26

Australia is to release data on inflation during the third quarter.

The U.S. is to report on new home sales.

Thursday, October 27

New Zealand is to release data on the trade balance.

The U.K. is to publish preliminary data on third quarter economic growth.

The U.S. is to produce reports on durable goods, initial jobless claims and pending home sales.

Friday, October 28

Japan is to release data on inflation and household spending.

In the euro zone, Germany is to publish preliminary inflation figures for October.

The U.S. is to wrap up the week with preliminary figures on third quarter GDP and a revised consumer sentiment reading from the University of Michigan.

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