.jpg)
Gold futures edged higher on Friday, as renewed hopes of continued stimulus from the Federal Reserve supported the precious metal.
Gold prices have largely tracked shifting expectations as to whether the Fed would start tapering its USD85-billion-a-month asset-purchase program by the end of the year.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery inched up 0.09% on Friday to settle the week at USD1,287.40 a troy ounce.
The December contract rose to USD1,293.80 a troy ounce on Thursday, the highest since November 8, before settling at USD1,286.30, up 1.41%.
Gold futures were likely to find support at USD1,265.00 a troy ounce, the low from November 13 and resistance at USD1,313.30, the high from November 8.
On the week, the precious metal advanced 0.21%, the first weekly gain in three weeks.
Gold prices edged higher after a report showed that the Federal Reserve’s Empire state manufacturing index fell to -2.21 from 1.52 in October. Economists had forecast a rise to 5.0.
A separate report showed that U.S. industrial production fell 0.1% in October, after rising by 0.7% in September, compared to expectations for a 0.2% increase.
The U.S. dollar weakened after the disappointing data dampened expectations that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as next month.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, fell 0.19% on Friday to settle the week at 80.87.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Gold prices rallied sharply on Thursday after testimony from Federal Reserve Vice Chairwoman Janet Yellen suggested the central bank will continue supporting the U.S. economy with stimulus.
Ms. Yellen said it was "imperative" that the Fed does everything in its power to ensure a robust recovery. She said the quantitative easing program would not continue indefinitely but the timescale for reducing it would be data dependent.
The comments came during a Senate confirmation hearing to take over from Ben Bernanke as head of the central bank in February.
In the week ahead, investors will be closely watching Wednesday’s minutes of the Fed’s most recent policy setting meeting. The U.S. is also to release data on retail sales and consumer prices.
Gold prices are down approximately 24% this year on concerns the Fed would begin cutting back its easy-money policy by trimming its USD85-billion monthly bond purchases.
Elsewhere on the Comex, silver for December delivery settled 0.02% higher on Friday to close the week at USD20.72 a troy ounce. Silver prices ended up 1.37% at USD20.72 on Thursday.
Despite Thursday’s gains, silver future prices still lost 2.76% on the week, the third consecutive weekly decline.
Meanwhile, copper for December delivery inched up 0.33% on Friday to close the week at USD3.171 a pound. On Thursday, copper futures fell to USD3.142 a pound, the lowest since August 7, before ending up 0.03% USD3.160 a pound.
Comex copper prices declined 2.55% on the week.
Copper futures tumbled to the lowest level since August after a top-level Communist Party meeting disappointed investors who were expecting announcements of major economic reforms.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. - investing.com
| 
| 
0 Your Opinion:
Post a Comment