.png)
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.
.jpg)
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, we 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.
New York-traded
crude oil futures ended little changed on Friday to cap a
sixth consecutive weekly decline amid worries the recent U.S.
government shutdown created a drag on economic growth and eroded demand
in the world’s largest oil consumer.
On the
New York Mercantile Exchange, light sweet
crude futures for delivery in December inched up
0.09% on Friday to settle the week at USD93.84 a barrel by close of
trade.
The December contract fell to USD92.51 a barrel on
Thursday, the lowest since June 4, before ending at USD93.76 a barrel,
down 0.13%.
Oil futures were likely to find support at USD92.51 a
barrel, the low from November 14 and resistance at USD95.22 a barrel,
the high from November 12.
On the week, U.S. oil futures
retreated 0.8%, the sixth consecutive weekly decline and the longest
losing streak since December 1998.
Concerns over the U.S.
economic outlook and the impact on future oil demand prospects mounted
after a report released Friday 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.
Oil traders often use manufacturing numbers as indicators for future fuel demand growth.
A
separate report said 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.
Traders also remained concerned about rising U.S. inventories.
