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Gold / Silver / Copper Prices - Weekly Outlook: April 1 - 5

Published 31/03/2019, 12:46
© Reuters.
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Investing.com - This week, precious metals traders will be tracking movements in the U.S. dollar, a major driver for gold, ahead of Friday’s U.S. government employment report for March, which comes after the Federal Reserve appeared to rule out the likelihood of any rate hikes this year.

Investors will also get an update on U.S. retail sales and manufacturing activity after the U.S. bond market flashed a recession warning when 10-year Treasury yields fell below three-month Treasury bill yields for the first time since 2007 earlier this month.

High level trade talks between the U.S. and China will also remain in focus as Chinese Vice Premier Liu He comes to Washington to meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

There are also Brexit headlines to monitor amid fears that no withdrawal deal will be reached before the April 12 deadline.

Gold futures ended higher on Friday, as the dollar eased on tepid U.S. economic data, a day after posting the largest single-session percentage decline since Aug. 13.

"The dollar is pulling back a little bit," said Josh Graves, senior commodities strategist at RJO Futures in Chicago. "Personal spending has declined, so investors are looking to place money in more safe-haven assets, like gold."

U.S. consumer spending rebounded less than expected in January and incomes rose modestly in February, adding to concerns that slowing global growth was affecting the world's largest economy as well.

Also propping up bullion were cautious signals from the U.S. Federal Reserve and the European Central Bank.

Gold, however, was still bound for a second consecutive monthly drop, losing about 1.4% - its biggest decline since August - weighed down by the dollar's recent strength.

The yellow metal had declined about 1.5% on Thursday.

Elsewhere in metals trading, silver settled at $15.098 a troy ounce late Friday but still ended the week off 1.93%, while copper ended at $2.932, up 2.07% for the day, for a weekly gain of 0.78%.

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

Monday, April 1

China is to publish its Caixin manufacturing PMI.

The U.K. is to release data on activity in its manufacturing sector.

The euro zone is to publish preliminary inflation data.

The U.S. is to report on retail sales and the Institute of Supply Management is to publish its manufacturing index.

Bank of Canada Governor Stephen Poloz is to speak.

Tuesday, April 2

Australia is to publish data on building approvals.

The Reserve Bank of Australia is to announce its benchmark interest rate and publish a rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.

The U.K. is to publish data on construction sector activity.

The U.S. is to report on durable goods orders.

Wednesday, April 3

Australia is to release data on retail sales and trade.

China is to publish its Caixin services PMI.

The U.K. is to release data on service sector activity.

The U.S. is to publish the ASD nonfarm payrolls report and the ISM non-manufacturing index.

Thursday, April 4

Germany is to release data on factory orders.

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

Friday, April 5

Financial markets in China will be closed for a holiday.

In the euro zone, Germany is to report on industrial production.

Canada is to publish its monthly employment report.

The U.S. is to round up the week with the government nonfarm payrolls report for March.

-- Reuters contributed to this report

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