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Gold / Silver / Copper futures - weekly outlook: May 15 - 19

Published 14/05/2017, 08:30 pm
© Reuters.  Gold prices rise, buoyed by weaker U.S. dollar
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Investing.com - Gold prices were higher on Friday to end the week little changed as the weaker dollar boosted demand for the precious metal.

Gold for June delivery settled up 0.37% at $1,228.7 on the Comex division of the New York Mercantile Exchange.

The dollar weakened after data on Friday showed that U.S. retail sales grew less than expected last month, and core inflation dipped, raising doubts over whether the Federal Reserve can hike rates two more times this year.

Retail sales rose 0.4% in April, the Commerce Department said, falling short of economists’ expectations for a 0.6% increase.

At the same time, the Labor Department reported that the annual rate of inflation slowed to 2.2% in April from 2.4% in March.

Annual core inflation, which strips out food and energy costs, fell to 1.9%, the lowest since October 2015.

Consumer prices rose 0.2% last month, rebounding from a 0.3% drop in March.

Markets are currently pricing in around a 70% chance of a rate hike in June in the wake of the data, according to Investing.com's Fed Rate Monitor Tool.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.48% at 99.05 following the release of the data.

Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Elsewhere in precious metals trading, silver rose 0.89% at $16.46 a troy ounce late Friday, while copper climbed 0.8% to $2.52 a pound

Platinum rose 0.47% to $922.00 a troy ounce, while palladium was up 0.74% to $804.9 a troy ounce.

In the week ahead, investors will be looking to U.S. reports on building permits, housing starts, industrial production and jobless claims for fresh indications on the strength of the economy.

Japan is to report on first quarter growth and the UK is to produce what will be closely watched data on inflation, employment and retail sales amid signs that the headwinds from Brexit are mounting.

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

Monday, May 15

New Zealand is to release data on retail sales.

China is to report on industrial production and fixed asset investment.

Switzerland is to publish figures on producer price inflation.

The U.S. is to release a report on manufacturing activity in the New York region.

Tuesday, May 16

The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting.

The UK is to report on consumer price inflation.

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

The ZEW Institute is to report on German economic sentiment.

The U.S. is to release reports on building permits, housing starts and industrial production.

Wednesday, May 17

New Zealand is to produce figures on producer price inflation input.

Australia is to release data on the wage price index.

The UK is to publish its monthly employment report.

The euro zone is to release revised data on consumer price inflation.

Canada is to report on manufacturing sales.

Thursday, May 18

Japan is to report on first quarter economic growth.

Australia is to publish its monthly employment report.

The UK is to produce retail sales figures.

The U.S. is to publish data on initial jobless claims and manufacturing activity in the Philadelphia region.

Friday, May 19

Canada is to round up the week with data on retail sales and inflation.

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