Gold/ Silver/ Copper Futures Weekly Outlook – November 14 to 18

On Friday, gold prices decline to five month lows as risk appetite rallied following Donald Trump’s win in the U.S. presidential election, weakening investor demand for safe haven assets.

Delivery of gold for December on the Comex division of the New York Mercantile Exchange settled down 3.10% at $1,227.15 a troy ounce, the lowest close since March 6.

Market sentiment improved by optimism that surge fiscal spending and tax reduction under a Trump administration will spur economic progress and inflation.

Gold prices were also stressed lower by the stronger U.S. greenback and continuing expectations for a Federal Reserve interest rate increase in December.

The U.S. dollar index hit nine-month peaks on Friday and increase 2.02% the previous week, the biggest weekly increase since November 2015.

“Gold is priced in dollars and becomes more expensive for holders of other currencies as the dollar rises.”

Anticipations for higher U.S. interest rates stayed complete during optimism that a pick-up in development will allow the Fed to tighten borrowing costs.

Investors have currently price an 81.1% possibility of a rate hike at the Fed’s December meeting, this is according to sources.

Gold is sensitive to change in U.S. rates, which boost the opportunity cost of holding non-yielding assets like bullion, while improving the dollar in which it is priced.

Also on the Comex, delivery of silver futures for December settled down 7.5% at $17.33 a troy ounce as the stronger dollar influenced.

Somewhere else in metals trading, copper prices decline on Friday, snapping a rally that had pushed prices to the highest in 17 months.

Delivery of Copper in December  settled at $2.50 a pound on the Comex. Prices had increased as high as $2.73 a pound before erasing gains.

Copper increased after Trump raised the prospect of increased infrastructure spending, while recent indications of strengthening demand in China have also underpinned prices.

In the week onward, investors will be looking to congressional testimony by Fed Chair Janet Yellen on Thursday for fresh indications on whether interest rates will increase next month.

On Monday, Japan is releasing preliminary figures on 3rd quarter progress and the U.S., the U.K. and Canada are all to release what will be closely observed inflation data later in the week.

On Additional News

On November 14, Japan is to release preliminary data on 3rd quarter economic development. China is to produce numbers on industrial output and fixed asset investment.  European Central Bank President Mario Draghi will speak at an event in Rome. New Zealand is to publish numbers on retail sales.

Tuesday, November 15, the Reserve Bank of Australia is to issue the minutes of its current monetary policy meeting, giving investors awareness into how officials view the economy and their policy options.

Germany and the wider euro zone are to publish preliminary estimates of 3rd quarter progress.  The ZEW Institute is to report on German economic sentiment.

The U.K. is to announce a report on consumer inflation. Later in the day, BoE Governor Mark Carney and other bank representatives are testifying on inflation and the economic outlook to the Treasury Committee.  The U.S. is to release statistics on retail sales and a report on manufacturing activity in the New York region.

On November 16, Wednesday, the U.K. is to post its closely observed monthly jobs report.  Canada is to post on manufacturing sales. The U.S. is to release data on industrial output and producer prices.

On November 17, Australia is to publish its jobs report. The U.K. is to release a report on retail sales.

“The euro zone is to release revised inflation data.  The U.S. is to release a string of reports covering inflation, jobless claims, housing starts and manufacturing activity in the Philadelphia region,” according to the reports.

Federal Reserve Chair Janet Yellen is to affirm on the economic outlook before the Joint Economic Committee, in Washington.

On  November 18, ECB head Mario Draghi is to talk at an event in Frankfurt.  Canada is to rundown the week, with data on consumer prices.

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