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

Published 21/02/2016, 11:49 pm
© Reuters.  Gold posts 1st weekly loss in a month, but U.S. interest rate outlook supports
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Investing.com - Gold prices inched up on Friday, rising for the third consecutive session amid ongoing speculation the Federal Reserve could delay the pace of its tightening for the remainder of 2016.

Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $4.50, or 0.37%, to close the week at $1,230.80 a troy ounce, as fresh falls in oil prices and equities underlined concerns over the outlook for the global economy, boosting demand for safe-haven assets.

On Thursday, gold surged $14.90, or 1.23%, after minutes from the Fed’s January meeting revealed that policymakers worried that tighter global financial conditions could hit the U.S. economy and considered changing their planned path of interest rate hikes in 2016.

Policymakers discussed "altering their earlier views of the appropriate path for the target range for the federal funds rate," according to the minutes.

Prices of the yellow metal soared to a one-year high of $1,263.90 on February 11. Gold is up nearly 16% so far this year amid indications global economic and financial headwinds could make it tough for the Fed to raise interest rates as much as it would like this year.

Market participants have all but priced out any rate hikes this year, while the Fed is anticipating four more. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

For the week, gold prices declined $8.50, or 0.69%, halting a four-week win streak, thanks to steep losses in the early part of the holiday-shortened week.

Also on the Comex, silver futures for March delivery shed 5.9 cents, or 0.38%, on Friday to close at $15.37 a troy ounce. On the week, silver futures slumped 33.2 cents, or 2.64%, the first weekly loss in five weeks.

Elsewhere in metals trading, copper for March delivery advanced 0.3 cents, or 0.14%, to end the week at $2.076 a pound on Friday, close to a two-week high.

Comex copper prices gained 2.8 cents, or 2.37%, on the week, amid mounting expectations for further stimulus measures from central banks in Europe and Asia.

In the week ahead, investors will be looking ahead to Friday’s revised data on U.S. fourth quarter gross domestic product for a fresh reading on the strength of the economy.

Reports on U.S. durable goods orders and consumer confidence will also be in focus.

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

Monday, February 22

The euro zone is to release survey data on manufacturing and service sector activity. Germany and France are also to release individual reports.

Tuesday, February 23

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

The U.S. is to release data on consumer confidence and existing home sales.

Wednesday, February 24

The U.S. is to release a report on new home sales and data on crude oil inventories.

Thursday, February 25

The U.K. is to release revised data on fourth quarter gross domestic product as well as preliminary data on business investment.

The euro zone is to publish revised inflation data.

The U.S. is to release reports on durable goods orders and initial jobless claims.

Friday, February 26

Japan is to publish data on inflation.

In the euro zone, Germany and Spain are to release preliminary estimates of inflation.

The U.S. is to round up the week with revised data on U.S. fourth quarter GDP, as well as data on personal spending and consumer sentiment.

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