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Gold / Silver / Copper futures - weekly outlook: April 27 - May 1

Published 26/04/2015, 12:01
Gold ends the week down 2.34% as global stock markets hit new highs
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Investing.com - Gold prices ended Friday's session at the lowest level in almost five weeks, as global equity markets rallied to trade near all-time highs, dampening the appeal of the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery hit an intraday low of $1,174.10 a troy ounce, a level not seen since March 20, before ending at $1,175.00, down $19.30, or 1.62%.

On the week, gold prices dropped $29.40, or 2.34%, the second straight weekly loss and the biggest decline in seven weeks.

Gold futures were likely to find support at $1,168.70, the low from March 20, and resistance at $1,203.70, the high from April 21.

Also on the Comex, silver futures for May delivery ended Friday's session at $15.63 a troy ounce, down 19.3 cents, or 1.22%. Earlier in the day, silver touched a low of $15.55, the weakest level since March 18.

For the week, silver lost 63.9 cents, or 3.65%, the fourth consecutive weekly decline.

Stock markets around the world rose to new all-time highs on Friday, boosted by upbeat corporate earnings results.

In the U.S., the Nasdaq Composite pushed above its previous record set in March 2000, while Japan's Nikkei 500 ended the week close to a 15-year peak.

Elsewhere on the Comex, copper for May delivery tacked on 5.4 cents, or 2.0%, on Friday to settle at $2.748 a pound amid speculation policymakers in China will have to introduce further stimulus measures to jumpstart the economy amid lackluster growth.

Despite Friday's gains, copper prices fell 6.6 cents, or 0.94%, on the week.

Prices of the red metal tumbled to $2.647 on Thursday, the lowest level since March 20 after data showed that China's HSBC (LONDON:HSBA) flash manufacturing purchasing managers' index slipped to 49.2 in April from March's final reading of 49.6, shrinking for the third consecutive month.

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, fell 0.37% on Friday to close at 97.07, the lowest level since April 6.

The index ended the week down 0.62%, the second straight weekly drop, as investors pushed back expectations for higher U.S. interest rates after a recent run of disappointing economic data dampened optimism over the economic recovery.

In the week ahead, market players will focus on the conclusion of the Federal Reserve's two-day monetary policy meeting on Wednesday, which could provide indications on how soon it might raise interest rates.

Investors will also be looking ahead to preliminary data on first quarter U.S. growth figures for further indications on the strength of the economy.

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