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After posting solid gains for over a week, the gold price turned down on Friday. The metal slipped 0.5 percent to hit $1,197.70 per ounce, but that loss did not erase gains made earlier in the week.
After posting solid gains for over a week, the gold price turned down on Friday. The metal slipped 0.5 percent to hit $1,197.70 per ounce, but that loss did not erase gains made earlier in the week, according to Reuters.
The price of gold is tightly linked to news of a possible US Federal Reserve rate increase. Fed officials signaled a cautious approach to interest rate hikes earlier in the month, propelling the gold price upward. However, on Friday, officials reaffirmed their plan to raise rates this year, which contributed to the metal’s dip.
The price of silver followed gold and slipped 0.6 percent on Friday, hitting $16.97 per ounce.
Copper‘s recent rally came to an end on Friday, and three-month copper futures on the London Metal Exchange fell 0.8 percent, to $6,124.50, as per Reuters. The copper price has been volatile as investors try to anticipate Chinese demand for the metal. The Asian country is the world’s largest copper consumer, but its slowing economy could drag down the metal’s price.
COMEX copper for May delivery slid 1.13 percent, to $2.779 a pound, Investing.com states.
Finally, the price of Brent crude increased for the week despite a 2.1-percent Friday decline to $57.95 a barrel, according to MarketWatch. The rally followed Saudi Arabia’s actions in Yemen.
“The crude complex is unwinding some of yesterday’s geopolitically-sponsored gains, as fears of contagion spreading in the Middle East calm,” said Schneider Electric commodities analyst Matt Smith to the news outlet.
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(March 20, 2015)
Weekly Round-Up: Gold Price at Two-week High After Fed Comments
Gold climbed to nearly a two-week high on Friday after the US Federal Reserve announced it will not be quick to raise interest rates, according to Reuters.
Specifically, the yellow metal rose 1 percent, hitting $1,171.45 per ounce and achieving its biggest jump since January. Earlier in the week it hit a four-month low, and prior to that had been on a two-week streak of losses.
Meanwhile, gold futures for April delivery rose 1 percent, or $1.70, to reach $1,170.70.
“For the short term, gold has had a stay of execution,” said Jonathan Butler, a Mitsubishi (TSE:8058) analyst. “With yields on Treasuries coming off a bit in the last few days, the environment is relatively benign for gold to make some gains over the next three or four weeks.”
Silver was also up this week, rising 0.6 percent to reach $16.18 an ounce.
Similarly, the copper price soared to an almost three-week high on Friday in response to Chinese inventories, which dropped for the first time in two months, Reuters reported. On the London Metal Exchange, the metal climbed 1.4 percent to reach $5,929.50 a tonne. That’s the highest the metal has been since March 2.
On the COMEX, copper saw a gain of 0.26 percent to reach $2.67 a pound, according to Investing.com
Finally, Brent crude oil dropped on Friday by $0.71, to $53.72 a barrel, as per another Reuters article. Oil has now seen a third week of losses, this time due to rising concerns about OPEC — on Thursday, Kuwait’s oil minister stated that OPEC will avoid cuts to oil output while world powers strive to reach a deal with Iran over its nuclear program. A deal with Iran could mean easing on its oil export sanctions, which would boost global supply.
“Oil has been under pressure following remarks by Kuwait’s oil minister and the very slim chance of an approaching deal with Iran,” said Eugene Weinberg, head of commodities research for Commerzbank (ETR:CBK).
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(March 13, 2015)
Weekly Round-Up: Investors Antsy Ahead of Fed Meeting
The gold price continued to fall on Friday despite putting on a strong performance early in the day. Reuters reported that the spot price dipped to $1,152 an ounce; meanwhile, US gold futures for April delivery slid to $1,151.
Unfortunately for gold bulls, events in the coming week are unlikely to reinvigorate the metal. A strong jobs climate has investors anticipating a Federal Reserve rate hike, and many expect the central bank to reveal new policy information during a meeting on March 18.
Robin Bhar, an analyst for Societe Generale (EPA:GLE), noted, “[t]he key event now is going to be the Fed meeting next Wednesday, so more clarity on the interest rates hike timing.”
Meanwhile, the silver price declined 0.3 percent from Thursday and reached $15.52 an ounce. The white metal has now recorded losses for the second week in a row, and in the future it may succumb to the bearish sentiment surrounding the upcoming Fed meeting.
LME copper traded at $5,837 a tonne on Friday for a 0.1-percent loss, according to Business Recorder. The metal’s downfall has been slowed somewhat by reports of reduced production from copper mines globally. This diminished supply, combined with a potential rise in copper demand from Chinese corporations during the second quarter, contributed to the metal’s performance for the week.
COMEX copper futures for May delivery dropped slightly during Friday trading to $2.652 a pound, but maintained a weekly gain of 1.7 percent, according to MarketWatch.
Finally, the price of Brent crude edged down to $56.46 per barrel following the release of an International Energy Agency report that points to rising global oil production, as per the International Business Times. While OPEC nations produced less oil in February than the month prior, production from the US and other countries increased, contributing to a surplus that has dragged down prices.
