Gold / Silver / Copper futures - weekly outlook: November 28 - December 2

By Investing.com / November 27, 2016 / in.investing.com / Article Link

Investing.com - Gold prices closed at the lowest level in nine months on Friday as expectations for higher U.S. interest rates continued to cloud the demand outlook for the precious metal.

Gold for December delivery settled down 0.53% at $1,183.00 on the Comex division of the New York Mercantile Exchange, the lowest close since February 5.

Safe haven demand for gold has been hit since the U.S. presidential election amid expectations that increased fiscal spending and tax cuts under the Trump administration will spur economic growth and inflation.

Faster growth would spark inflation, which in turn would prompt the Federal Reserve to tighten monetary policy a faster rate than had previously been expected.

The precious metal has also been weighed down by bets that a rate hike by the Fed in December is a near certainty.

According to Investing.com's Fed Rate Monitor Tool, 95.4% of traders expect the Fed to raise interest rates at its policy meeting next month.

Gold is sensitive to moves in U.S. 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 metals trading, silver settled at $16.47, paring the week's losses to 0.48%.

Also on the Comex, copper for December delivery settled at $2.46 a pound.

Copper prices have risen around 22% so far this month on hopes that infrastructure plans in top consumers China and the U.S. will bolster demand for the industrial metal.

In the week ahead, markets will be paying close attention to Friday's U.S. nonfarm payrolls report for November as well as data on U.S. economic growth and manufacturing for fresh indications on the likelihood of a December rate hike.

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

Monday, November 28

European Central Bank President Mario Draghi is due to testify about the ECB's outlook on economic and monetary developments and the consequences of Brexit to the Economic Committee in the European Parliament.

Tuesday, November 29

Japan is to release data on household spending.

Bank of Canada Governor Stephen Poloz is to speak at an event in Toronto.

Germany is to release preliminary data on consumer price inflation.

The U.S. is to produce revised data on third quarter GDP and a report on consumer confidence.

New York Fed President William Dudley is to speak at an event in Puerto Rico.

Wednesday, November 30

Australia is to release data on building approvals.

Germany is to report on retail sales and the change in the number of people unemployed.

The euro zone is to release a preliminary estimate of consumer price inflation.

ECB head Mario Draghi is to speak at an event in Madrid.

The U.S. is to release the ADP nonfarm payrolls report for November, as well data on pending home sales and the Chicago PMI.

Canada is to release its monthly GDP report.

Thursday, December 1

Australia is to release data on private capital expenditure.

China is to release its official manufacturing and services PMI's, along with the Caixin manufacturing PMI.

The U.K. is to release its manufacturing PMI.

The U.S. is to release figures on initial jobless claims and the Institute for Supply Management is to release its manufacturing PMI.

Friday, December 2

Australia is to produce data on retail sales.

The U.K. is to release its construction PMI.

Canada is to publish its employment report for November.

The U.S. is to round up the week with the non-farm payrolls report for November.

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