Metals Price Watch: Gold Price Poised for Largest Weekly Rise in Two Years

By:
on Jul 12, 2013
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**Gold and Silver**

iNVEZZ.com, Friday, July 12: The gold price halted a decline earlier today and is now on track for the biggest weekly gain in nearly two years, boosted by Feds comment on Wednesday that showed commitment to maintaining stimulus measures in the US. Fed Chairman Ben Bernanke said on Wednesday that debt purchases known as quantitative easing could last longer than suggested last month to support the US economy. Bernanke’s comments have provided support for the bullion, boosting the precious metal’s appeal as a hedge against inflation.

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Gold dropped to $1,267.29 per ounce earlier today but has rebounded since and was trading at $1,278 an ounce as of 15:50 GMT. Analysts believe that the gold price now faces strong resistance crossing the $1,300 level.

“We are going to see a range of $1,200 to $1,300 for the short term, and trade may stay pretty volatile after the Fed has walked a fine line with withdrawing QE at the right pace,” Standard Chartered analyst Daniel Smith said, as quoted by the Reuters.

The silver price declined 1.3 percent to $19.83 an ounce after reaching a three-week high at $20.26 on Thursday. The platinum price fell 0.5 percent to $1,397.99 after also hitting a three-week high of $1,414.75 earlier. The palladium price edged down 0.1 percent to $715.50 an ounce.
**Base metals**
The copper price dropped today on the London Metal Exchange as the US dollar strengthened and traders cut risk ahead of Chinese data next week. Still, reassured by Fed signals of continued quantitative easing, the metal remains on track for the biggest weekly gain in two months. Copper for delivery in three months was trading at $6,940 a metric ton on the London Metal Exchange on Friday, after closing at $7,000 on Thursday.

“The Fed got their message across that tapering isn’t imminent. That was yesterday’s story,” BNP Paribas analyst Stephen Briggs said, as quoted by Reuters.
!m[Copper Price Set for Biggest Weekly Gain in Two Months](/uploads/story/3950/thumbs/pic1_inline.jpg)
He said that “the focus now returns to China”, adding that “the market’s view is that the slowdown in China is quite a substantial one, and China is more important for metals demand than the U.S. and Europe.” China is the world’s biggest consumer of the metal, accounting for 40 percent of global demand.
The tin price rose to $19,495 per ton from $19,450 at Thursday’s close on the LME.
The aluminium price was at $1,831.50, down from $1,835; the lead price declined to $2,062 from $2,080; the zinc price dipped to $1,894 from $1,900 and the nickel price inched down to $13,625 from $13,635.

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