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Gold / Silver / Copper futures - weekly outlook: April 13 - 17

Published 12/04/2015, 12:40
Updated 12/04/2015, 14:02
© Reuters.  Gold snaps three-day losing streak ahead of key U.S. data next week
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Investing.com - Gold prices rose for the first time in three sessions on Friday, amid speculation key U.S. data next week will add to evidence that the economy slowed in the first quarter.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery tacked on $11.00, or 0.92%, to settle at $1,204.60 a troy ounce by close of trade.

A day earlier, gold fell to $1,192.40, the lowest level since April 1, before ending at $1,193.60, down $9.50, or 0.79%.

Futures were likely to find support at $1,180.50, the low from April 1, and resistance at $1,224.50, the high from April 6.

On the week, gold prices inched up $3.70, or 0.31%, the fourth straight weekly gain.

Futures are up more than 5% since hitting a recent low of $1,140.60 on March 17, as indications that the U.S. economy slowed in the first quarter fuelled bets the Federal Reserve will hold off on hiking interest rates until late 2015.

A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

Elsewhere on the Comex, silver futures for May delivery ended Friday's session at $16.38 a troy ounce, up 20.6 cents, or 1.27%. On Thursday, prices slumped to $16.10, a level not seen since March 20, before closing at $16.17, down 27.8 cents, or 1.69%.

For the week, silver lost 31.9 cents, or 1.91%, the second straight weekly decline.

In the week ahead, markets will be looking ahead to Tuesday’s report on U.S. retail sales, as well as Friday’s reports on inflation and consumer sentiment, for further indications on the strength of the economy.

Also in metals trading, copper for May delivery picked up 0.5 cents, or 0.18%, on Friday to settle at $2.734 a pound. The red metal was little changed on the week.

Copper traders are looking ahead to a raft of Chinese economic data in the week ahead, including reports on first quarter gross domestic product, as well as data on industrial production and the trade balance.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.38% to 99.63 late Friday. The index gained 2.89% for the week.

The euro ended at 1.0603 against the greenback on Friday, down 0.51%. For the week, the pair lost 3.57%, the worst weekly performance since September 2011, as the diverging monetary policy stance of the European Central Bank and the Fed pressured the single currency.

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

Monday, April 13

China is to release data on the trade balance.

Tuesday, April 14

The U.S. is to release data on retail sales and producer prices.

Wednesday, April 15

China is to release official figures on GDP growth and fixed asset investment.

The ECB is to announce its interest rate decision. The rate announcement is to be followed by a press conference with President Mario Draghi.

The U.S. is to release reports on industrial production and manufacturing activity in New York state.

Thursday, April 16

The U.S. is to release a string of reports, including jobless claims, building permits, housing starts and manufacturing activity in the Philadelphia region.

Friday, April 17

The U.S. is to round up the week with data on consumer prices and consumer sentiment.

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