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Gold / Silver / Copper futures - weekly outlook: August 11 - 15

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Investing.com -

Investing.com - Gold futures rallied to a three-week high on Friday, before ending modestly lower as investors continued to monitor geopolitical developments in Ukraine and Iraq.

On the Comex division of the New York Mercantile Exchange, gold for December delivery rose to a session high of $1,324.30 a troy ounce, the most since July 18, before settling at $1,311.00 by close of trade, down 0.11%, or $1.50.

A day earlier, gold tacked on 0.33%, or $4.30, to end at $1,312.50 an ounce. On the week, Comex gold prices advanced 1.23%, or $16.20, the first weekly gain in four weeks.

Gold prices were likely to find support at $1,283.80, the low from August 5 and resistance at $1,325.50, the high from July 18.

Appetite for safe haven assets weakened Friday after news reports that Russia ended military exercises on the Ukrainian border, easing concerns that an invasion could take place.

NATO warned earlier in the week that Russia massed around 20,000 combat-ready troops on Ukraine's border in preparation for a possible ground invasion.

Gold rallied to a three-week high in early trade after U.S. President Barack Obama authorized air strikes in Iraq to halt a Sunni insurgency there and to protect Iraqi civilians from the uprising as well as U.S. personnel in the country.

Elsewhere, Israel said Hamas had violated a 72-hour cease-fire and ordered the military to resume fire in the Gaza Strip on Friday.

Gold is often seen as a haven investment in times of geopolitical uncertainty.

In the week ahead, investors will be continuing to monitor geopolitical risk, while preliminary data on second quarter growth from the euro zone will be closely watched.

Markets watchers will also be looking ahead to U.S. report on July retail sales for further clues about the U.S. economy and the timing of future interest rate hikes.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers decreased their bullish bets in gold futures in the week ending August 5.

Net longs totaled 104,111 contracts, down 14.7% from net longs of 122,092 in the preceding week.

Also on the Comex, silver for September delivery shed 0.25%, or 4.9 cents, on Friday to settle the week at $19.94 a troy ounce.

On the week, the September silver futures contract lost 2.11%, or 43.0 cents, the fourth straight weekly decline.

Data from the CFTC showed that net silver longs totaled 29,065 contracts as of last week, compared to net longs of 41,699 contracts in the preceding week.

Elsewhere in metals trading, copper for September delivery declined 0.08%, or 2.5 cents, on Friday to end the week at $3.173 a pound by close of trade.

On the week, Comex copper prices fell 1.27%, or 4.1 cents a pound, amid concerns over a slowdown in demand from top consumer China.

Official trade data released Friday showed that China's copper arrivals fell 2.9% month-on-month in July, declining for a third straight month.

The country's trade surplus widened to a record high of $47.3 billion in July from $31.6 billion in June, compared to estimates for a surplus of $27.0 billion.

Chinese exports climbed 14.5% from a year earlier, beating expectations for a 7.5% increase, however imports declined 1.6% last month, disappointing forecasts for a 3% gain.

According to the CFTC, net copper longs totaled 34,330 contracts as of last week, down from net longs of 38,859 contracts in the preceding week.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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