Metals Price Watch: Gold Price Headed for Second Weekly Gain

on Jul 19, 2013
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iNVEZZ.com, Friday, June 19: The gold price rebounded from an intraday low on Friday, helped by a rally in Tokyo bullion futures on a weaker yen and speculative buying ahead of elections in Japan on Sunday. As of 13:30 BST, the precious metal’s price looked set for a second consecutive weekly gain after rising nearly five percent last week.

The copper price fell on the London Metal Exchange today, pressured by worries over demand outlook, but the decline was contained by this week’s reassurance from Federal Reserve Chairman Ben Bernanke that the US central bank was flexible with scaling back its economic stimulus measures.
**Gold and silver**
The gold price fell to $1,281.94 an ounce in today’s early session but a rally in Tokyo bullion futures helped the metal back up. The most active gold futures contract on the Tokyo Commodity Exchange climbed to a four-week peak at 4,171 yen ($41.67) a gram.

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“There are talks the government will increase the consumption tax from next April, so some people are taking positions,” said a physical dealer in Tokyo as quoted by Reuters. “We’ve seen speculative buying related to the coming election.”
The gold price was at $1,293.03 an ounce as of 14:11 BST, up from a close of $1,284.49 on Thursday. The metal is headed for its second straight weekly gain, albeit a more modest one than the five percent rise recorded last week.

**The silver price gained 14 cents to $19.48 as of 14:31 BST.**
**Base metals**
Three-month copper on the London Metal Exchange was at $6,880.25 a metric ton as of 9:57 BST, down 0.3 percent from the last bid of $6,900 on Thursday. It gained to $6,925 a tonne in official rings in the afternoon, supported by a drop in the dollar against a basket of currencies. A weak US dollar makes dollar-priced commodities cheaper for holders of other currencies.

!m[](/uploads/story/4173/thumbs/pic1_inline.jpg)Concerns over outlook for Chinese demand weighed on the copper price but the metal found support in Bernanke’s congressional testimony, in which he confirmed that the US central bank would start scaling back debt purchases known as quantitative easing only when it’s sure that the economy had strengthened enough.

Despite the Fed’s commitment to stimulus, some analysts believe that slowing growth in demand from top consumer China, which accounts for 40 percent of the global copper demand, suggests a limited upside potential.
**In other base metals, zinc was little changed at $1,866.50 from $1,856.50 and lead was at $2,054 from $2,036.50. Aluminium rose to $1,817 a tonne in official rings from $1,805 at Thursday’s close. Nickel edged up to $14,055 from $14,000 and tin traded at $19,600 a tonne from $19,545.**

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Commodity Precious Metals