Gold / Silver / Copper futures - weekly outlook: June 22 - 26

Investing.com - Gold ended Friday's session little changed near a four-week high as investors pushed back expectations for higher U.S. interest rates and amid mounting fears over a potential Greek debt default.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery settled at $1,201.90 a troy ounce on Friday, down 10 cents, or 0.01%. On Thursday, prices rallied to $1,205.70, the most since May 26, before closing up $25.20, or 2.14% at $1,202.00.

For the week, prices of the precious metal rose $21.90, or 1.93%, the second straight weekly gain. Futures were likely to find support at $1,171.90, the low from June 15, and resistance at $1,208.90, the high from May 26.

Gold rallied after the Federal Reserve lowered both its U.S. growth forecast and its interest-rate projections following the conclusion of its policy meeting on Wednesday, prompting investors to push back expectations on the timing of an initial rate hike.

Fed Chair Janet Yellen said the central bank wanted to see “more decisive evidence” of sustained growth before raising rates, but acknowledged that the economy has “expanded moderately” after a weak first quarter.

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.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell to a five-week low of 93.30 on Thursday, before recovering to end at 94.32 by late-Friday. The index still ended the week down 1.02%, the third straight weekly decline.

Meanwhile, investors continued to monitor developments surrounding talks between Greece and its international creditors, amid growing concerns that the country could default on its debt be forced out of the euro zone.

Greece is running out of time before it owes the International Monetary Fund a bundled loan payment of €1.5 billion on June 30. At the same time, the remaining €7.2 billion of a €240 billion stimulus package from its international creditors is set to expire at the month.

All 28 members of the European Union are scheduled to be present at an emergency summit on Monday, in what could be Greece's final opportunity to avoid a default. Failure to strike a deal would result in Greece defaulting on payments and exiting the euro zone.

Also on the Comex, silver futures for July delivery ended Friday's session at $16.10 a troy ounce, down 4.4 cents, or 0.27%. Prices hit $16.43 on Thursday, the strongest level since June 4.

On the week, silver prices tacked on 20.9 cents, or 1.79%, halting a four-week losing streak.

Elsewhere in metals trading, copper for July delivery slumped 3.7 cents, or 1.42%, on Friday to settle at $2.569 a pound after hitting a daily low of $2.558, a level not seen since March 18.

For the week, prices of the red metal tumbled 10.6 cents, or 4.07%, the fifth 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 key U.S. housing data as well as a report on durable goods orders, 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 22

Markets in China are to remain closed for the Dragon Boat Festival holiday.

European leaders are to hold emergency talks in Brussels about Greece’s bailout agreement, which is due to expire on June 30.

The U.S. is to release private sector data on existing home sales.

Tuesday, June 23

China is to publish the preliminary reading of the HSBC manufacturing index.

The U.S. is to release reports on durable goods orders, manufacturing activity and new home sales.

Wednesday, June 24

In the euro zone, the Ifo Institute is to report on German business climate.

The U.S. is to release revised data on first quarter economic growth.

Thursday, June 25

The Gfk Group is to report on German business climate.

The U.S. is to release the weekly report on initial jobless claims as well as data on consumer spending.

Friday, June 26

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