Gold, Silver, Copper Futures Weekly Outlook: June 26-30

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Includes: CPER, CUPM, GLD, GTU, IAU, JJCTF, OUNZ, PHYS, PSLV, QGLDX, SGOL, SIVR, SLV
by: Investing.com

Gold prices rose to one-week highs on Friday, boosted by the weaker dollar which fell amid persistent fears over prospects for further U.S. interest rate hikes this year.

Gold for August delivery closed up 0.71% at $1,258.31 on the Comex division of the New York Mercantile Exchange, after rising as high as $1,260.00 earlier.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.37% at 96.98 late Friday, posting its largest one-day decline in three weeks.

St. Louis Federal Reserve President James Bullard said Friday that the Fed should hold off on any further rate increases to see how the economy is progressing.

"Recent inflation data have surprised to the downside and call into question the idea that U.S. inflation is reliably returning toward target," he said. "The Fed can wait and see how the economy develops before making any further adjustments."

At its meeting the previous week, the Fed stuck to its projection for one more rate hike this year despite recent weak inflation data.

The dollar had risen earlier in the week boosted by comments by New York Fed President William Dudley, who said a tightening labor market would push up wages and cause inflation to reverse from its current pullback.

Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures, which are denominated in the U.S. currency, will rise.

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

Elsewhere in precious metals trading, silver gained 1.13%% to $16.69 a troy ounce late Friday.

Meanwhile, copper rose 1% to $2.624 a pound, platinum added 0.9% to $929.25 and palladium fell 3.1% to $853.23 an ounce.

In the week ahead, investors will be closely watching remarks by Fed Chair Janet Yellen on Tuesday for fresh indications on the timing of further rate hikes and signals on plans to trim the Fed's balance sheet.

Market watchers will also be awaiting Friday's euro zone inflation data and speeches by central bank heads at the ECB's forum on central banking in Portugal.

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

Monday, June 26

The Ifo Institute is to report on German business climate.

The U.S. is to release data on durable goods orders.

ECB President Mario Draghi is to open the ECB's annual forum on central banking in Portugal.

Tuesday, June 27

ECB President Mario Draghi is to speak in Portugal.

The Bank of England is to publish its bi-annual financial stability report and Governor Mark Carney is to hold a press conference.

The U.S. is to publish a report on consumer confidence.

Fed Chair Janet Yellen is to speak at an event in London.

Wednesday, June 28

The heads of the ECB, BoE, Bank of Japan and Bank of Canada are to speak at the ECB central banking forum in Portugal.

The U.S. is to release figures on pending home sales.

Thursday, June 29

New Zealand is to report on business confidence.

Germany is to publish preliminary data on inflation.

The U.S. is to release revised data on first-quarter growth and a report on initial jobless claims.

Friday, June 30

China is to release data on manufacturing and service sector activity.

Germany is to report on retail sales.

The U.K. is to publish current account data as well as revised figures on first-quarter growth.

The euro zone is to publish preliminary data on inflation.

Canada is to produce monthly data on economic growth.

The U.S. is to round up the week with a report on personal spending and revised data on consumer sentiment.

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