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Gold / Silver / Copper futures - weekly outlook: August 28 - September 1

Published 27/08/2017, 11:57
© Reuters.  Gold prices settle higher as dollar falls after Yellen speech
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Investing.com - Gold prices ended higher in a volatile session on Friday, reversing earlier losses as the U.S. dollar weakened after Federal Reserve Chair Janet Yellen's speech at Jackson Hole didn’t specifically address monetary policy.

Gold futures for December delivery settled up 0.3% at $1,295.95 on the Comex division of the New York Mercantile Exchange, after falling as low as $1,281.3 earlier, the weakest level since August 16.

Gold gained ground as the dollar fell after Yellen’s speech at the Jackson Hole economic symposium did not discuss the outlook for monetary policy, disappointing some investors who had hoped she would sound a hawkish tone.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.82% at 93.47 late Friday after falling as low as 92.34 earlier.

The dollar index has fallen around 10% so far this year amid ongoing uncertainty over the economic agenda of U.S. President Donald Trump and doubts that the Fed will deliver a third rate hike this year.

A weaker U.S. currency makes the dollar-denominated metal cheaper for foreign buyers.

Elsewhere in precious metals trading, silver rose 0.57% to $17.07 a troy ounce late Friday, while platinum was down 0.54% at $977.3.

Among base metals, copper ended at $3.05 a pound, remaining close to three year highs amid expectations that ongoing demand from China will continue to support prices.

In the week ahead, investors will be focusing on Friday’s U.S. jobs report for August to gauge how it will impact on the path of Fed policy. Traders will also be closely watching a revised reading of U.S. second quarter growth.

Thursday’s euro zone preliminary inflation estimate will also be in focus.

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

Monday, August 28

Financial markets in the UK are to remain closed for a holiday.

Tuesday, August 29

Canada is to release data on raw materials price inflation.

The U.S. is to report on consumer confidence.

Wednesday, August 30

Australia is to release data on building approvals and completed construction work.

Germany is to release preliminary inflation data.

The UK is to produce data on net private lending.

The U.S. is to release the ADP nonfarm payrolls report as well as revised data on second quarter growth.

Thursday, August 31

China is to release survey data on activity in the manufacturing and services sectors.

New Zealand is to publish a report on business confidence.

Australia is to produce data on private capital spending.

The euro zone is to release its preliminary inflation estimate while Germany is to report on retail sales.

Canada is to release monthly data on GDP growth.

The U.S. is to put out a string of data, including reports on jobless claims, personal income and spending and pending home sales.

Friday, September 1

China is to publish its Caixin manufacturing PMI.

The UK is to release data on manufacturing activity.

The U.S. is to round up the week with the non-farm payrolls report for August and the Institute for Supply Management is to publish its manufacturing index.

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