MTECHTIPS:-Gold / Silver / Copper futures - weekly outlook: January 18 - 22
Gold prices posted their biggest one-day gain in six weeks on Friday, as market players sought refuge in the yellow metal amid steep declines in global stock markets. A batch of soft U.S. economic data and weakness in the U.S. dollar provided further support. for February delivery on the Comex division of the New York Mercantile Exchange jumped $17.10, or 1.59%, to close the week at $1,090.70 a troy ounce. It earlier rose by as much as 2.2% to a session high of $1,097.50. Global stock markets plunged on Friday as collapsed further below the $30-level, adding to fears over the outlook for global growth. China’s entered a bear market Friday, European equities ended sharply in the red, while Wall Street closed more than 2% lower after hitting a near 15-month low. Meanwhile, the , which measures the greenback’s strength against a trade-weighted basket of six major currencies, shed 0.13% to close the week at 98.99, following the release of disappointing economic data. U.S. , and all fell short of market expectations, the latest indication that economic growth stalled in the fourth quarter. The downbeat data could persuade the Federal Reserve to delay its next interest rate beyond the first quarter. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases. Despite Friday’s gains, gold prices lost $7.20, or 0.65%, on the week. Futures are still up almost 3% so far this year as safe-haven demand was boosted amid a global stock market rout, worries over the Chinese economy and heightened geopolitical tensions. Also on the Comex, for March delivery tacked on 14.8 cents, or 1.08%, on Friday to settle at $13.89 a troy ounce. On the week, silver futures inched down 6.9 cents, or 0.16%. Elsewhere in metals trading, for March delivery slumped 3.2 cents, or 1.64%, to settle the week at $1.943 a pound on Friday after sinking to $1.936 earlier in the session, a level not seen since March 2009.
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