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Gold / Silver / Copper Prices - Weekly Outlook: February 12 - 16

Published 11/02/2018, 11:29
Updated 11/02/2018, 11:35
© Reuters.  Gold ends week lower as stronger dollar weighs
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Investing.com - Gold prices edged lower on Friday in what was a fifth day of declines in the last six sessions as the stronger dollar weighed on the precious metal, making it more expensive for holders of other currencies.

Gold futures for April delivery settled at $1,315.70 on the Comex division of the New York Mercantile Exchange. For the week, prices were down 1.62%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 90.22 in late trade.

The index was up 1.45% on the week, having recovered from a three-year low set two weeks ago.

The dollar was supported by increased safe haven demand from investors amid dramatic moves in the equities and bond markets. U.S. stocks ended higher on Friday, but still suffered their steepest weekly losses in more than two years.

Market turbulence has been triggered by speculation that the Federal Reserve may raise interest rates at a faster rate than had been expected amid signs of a pickup in inflation.

Expectations for higher interest rates are typically negative for gold as the precious metal struggles to compete with yield-bearing assets like Treasury’s when borrowing costs rise.

The dollar also found received support after Congress and U.S. President Donald Trump approved a federal budget plan that ended an overnight federal shutdown.

Elsewhere in precious metals trading, silver was down 0.19% to $16.31 a troy ounce late Friday and recorded a 1.48% weekly decline.

Platinum settled at $968.20, down 1.04% for the day, bringing the week’s losses to 2.78%

Among base metals, copper prices fell for the sixth straight session on Friday amid concerns over building supplies.

Copper for March delivery was down 1.04% at $3.050 in late trade and ended the week down 4.75%. It was the lowest close since mid-December and the largest weekly percentage decline since November 2014.

In the week ahead, inflation readings from the U.S., UK and Germany will be in the spotlight amid chatter that the world's leading central banks will soon start to step back from easy policies and raise interest rates.

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

Monday, February 12

Financial markets in Japan will be closed for a holiday.

Tuesday, February 13

Australia is to publish data on business confidence.

The UK is to release data on inflation.

Federal Reserve Bank of Cleveland President Loretta Mester is due to speak at an event in Dayton.

Wednesday, February 14

Japan is to release preliminary data on fourth quarter growth.

New Zealand is to release a report on inflation expectations.

The euro zone is to publish a revised estimate of fourth quarter economic growth as well as a revised estimate on inflation for January.

Later in the day, the U.S. is to report on consumer price inflation and retail sales.

Thursday, February 15

Financial markets in China will be closed for a holiday.

Australia is to publish its latest employment report.

The U.S. is to release data on producer prices, industrial production, jobless claims and manufacturing activity in the Philadelphia and New York regions.

Friday, February 16

Financial markets in China will remain closed for a holiday.

The UK is to release data on retail sales.

Canada is to report on foreign securities purchases and manufacturing sales.

The U.S. is to round up the week with data on building permits, housing starts, import prices and a preliminary look at consumer sentiment.

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