Investing.com - This week precious metals traders will see whether gold’s surge higher can be sustained after a rout in global equity markets which coincided with weakness in the dollar bolstered safe haven demand for the yellow metal.
On Wednesday investors will get the chance to review the minutes of the Federal Reserve’s September meeting, when it raised rates for a third time this year.
The minutes come in the wake of President Donald Trump’s criticism of the central bank’s recent rate hikes.
Investors will also get updates on U.S. retail sales, industrial production and the health of the housing market.
Outside the U.S., Italy’s budget is likely to remain in focus, while investors will be monitoring the pound ahead of a crunch European Union summit on Brexit on Thursday.
Meanwhile, China is to release what will be closely watched data on third quarter growth on Friday, amid concerns about the global economic outlook and the ongoing trade spat between Washington and Beijing.
Gold prices slid on Friday but still ended the week with a gain of around 1.4%, its second straight weekly increase. December gold futures settled down 0.49% at $1,221.60 on the Comex division of the New York Mercantile Exchange.
On Thursday, prices settled at $1,223.50, the highest level since August 1.
Gold slipped lower as the dollar rebounded against a currency basket, snapping three days of declines as a sense of calm returned to U.S. stock markets following sharp declines in the previous two sessions.
The stock market selloff was triggered by a combination of concerns over the impact of rising bond yields and fears that trade conflicts are starting to have a serious impact on the global economy.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.26% at 94.94 late Friday.
Expectations for rising interest rates look likely to remain a headwind for gold prices.
Interest rate increases and higher U.S. bond yields dampen appeal for gold, which offers no yield. They also tend to boost the dollar. A stronger dollar can make dollar denominated assets, like gold, more expensive for potential buyers holding other currencies.
Elsewhere in precious metals trading, silver settled up 0.16% at $14.630 a troy ounce, to end the week little changed. Platinum settled at $841.80, 0.57% lower for the day, trimming the week’s gains to 2%.
Among base metals, copper ended at $2.812, up 0.32% for the day, for a weekly gain of 1.53%.
Ahead of the coming week, Investing.com has compiled a list of significant events likely to affect the markets.
Monday, October 15
Monday is the deadline for European Union countries to submit their draft 2019 budgets to the European Commission and Italy’s proposed budget is likely to garner the most attention.
The U.S. is to release data on retail sales.
The Bank of Canada is to publish its business outlook survey.
Tuesday, October 16
New Zealand is to release data on consumer price inflation.
The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting.
China is to release inflation data.
The UK is to produce its latest employment report.
Wednesday, October 17
The UK is to report on inflation figures.
Canada is to release data on manufacturing sales.
The U.S. is to report on building permits and housing starts.
Later in the day, the Fed is to publish the minutes of its September meeting.
Thursday, October 18
Australia is to publish its latest jobs report.
Bank of Japan Governor Haruhiko Kuroda is to speak at an event in Tokyo.
The UK is to release data on retail sales.
The EU is to hold a summit meeting where the UK may reach a deal with the bloc on Brexit.
Friday, October 19
China is to release data on third quarter growth as well as figures on fixed asset investment and industrial production.
The UK is to publish figures for public sector borrowing.
Canada is to produce data on retail sales and inflation.
The U.S. is to report on existing home sales.
Bank of England Governor Mark Carney is to speak at an event in New York.