Gold / Silver / Copper futures - weekly outlook: June 8 - 12

Investing.com - Gold plunged to the lowest level in almost three months on Friday, as robust U.S. nonfarm payrolls data boosted optimism over the health of the economy and supported the case for a U.S. interest rate hike this year.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery hit a session low of $1,162.10, a level not seen since March 19, before settling at $1,168.10 by close of trade, down $7.10, or 0.6%.

Futures were likely to find support at $1,159.70, the low from March 19, and resistance at $1,186.60, the high from June 4.

The Labor Department reported that the U.S. economy added 280,000 jobs in May, the most since December and far more than the 225,000 forecast by economists.

The unemployment rate ticked up to 5.5% last month from 5.4% in April, while average hourly earnings rose by 0.3%, above expectations for a 0.2% increase.

The robust jobs report added to the view that the U.S. economy was regaining strength after contracting in the first quarter, fuelling speculation that the Federal Reserve could raise rates as early as September.

Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, jumped 0.93% to 96.38 late Friday.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

For the week, prices of the precious metal lost $21.70, or 1.82%, the third straight weekly decline, amid growing expectations that the Fed would raise interest rates after the summer.

Also on the Comex, silver futures for July delivery ended Friday's session at $15.98 a troy ounce, down 11.9 cents, or 0.74%. Prices fell to $15.93 earlier Friday, the weakest level since May 1.

On the week, silver prices tumbled 71.1 cents, or 4.29%, the third consecutive weekly loss.

Elsewhere in metals trading, copper for July delivery inched up 0.5 cents, or 0.2%, on Friday to settle at $2.692 a pound after hitting a daily low of $2.670, a level not seen since April 23.

For the week, prices of the red metal dropped 3.6 cents, or 1.32%, the third straight weekly decline, amid mounting concerns over the health of China's economy.

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

In the week ahead, investors will be focusing on Thursday's U.S. retail sales report for May, as well as Friday's consumer sentiment data, for fresh indications on the strength of the economy and the timing of a rate increase.

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

Monday, June 8

Japan is to release revised data on first quarter economic growth.

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

Tuesday, June 9

China is to release data on consumer and producer price inflation.

The euro zone is to release revised data on first quarter economic growth.

Wednesday, June 10

The U.K. is to release data on manufacturing production. Later in the day, Bank of England Governor Mark Carney is to speak at an event in London.

Thursday, June 11

China is to release a string of data, including reports on industrial production, fixed asset investment and retail sales.

The U.S. is to release reports on initial jobless claims and retail sales.

Friday, June 12

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