Investing.com – This week precious metals traders will be watching developments around global trade tensions and geopolitical risks, as well as moves in the U.S. dollar, after gold prices ended higher on Friday, notching up a weekly gain of more than 1%.
Safe haven demand for the yellow metal was underpinned following the recent selloff in equity markets, a steep fall in oil pieces and mounting uncertainty over the outlook for the global economy arising out of trade tensions.
Heightened uncertainty over Brexit also supported safe haven demand for gold.
December gold futures ended up 0.66% at $1,223.00 on the Comex division of the New York Mercantile Exchange late Friday, for a weekly gain of 1.19%.
The dollar fell against a basket of the other major currencies on Friday after dovish comments by Federal Reserve Vice Chair Richard Clarida, who said he saw some evidence that global growth is slowing.
Clarida also noted that U.S. interest rates are nearing a neutral rate, and being at neutral “makes sense.”
The comments were seen as an indication that the Fed may pause its interest rates hikes sooner than had been anticipated.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.5% to one-week lows of 96.31 in late trade, to end the week 0.43% lower.
A weaker dollar can make dollar denominated assets, like gold, less expensive to potential buyers holding other currencies.
Elsewhere in metals trading, palladium hit record highs on Friday and amid concerns over a supply shortage. The metal is used in catalytic converters which reduce harmful emissions in gasoline engines.
Palladium futures high a high of $1,168.30 and settled at $1,154.6, up 1.51% for the day, to end the week with a gain of 5.4%.
Silver settled up 0.83% at $14.382 a troy ounce, to end the week with a gain of 1.81%, while copper ended at $2.804, up 2% for the day, ending the week down 4.35%.
Ahead of the coming week, Investing.com has compiled a list of significant events likely to affect the markets.
Monday, November 19
Japan is to release data on trade.
Federal Reserve Bank of New York President John Williams is to speak at an event in New York.
Tuesday, November 20
The Bank of Japan is to publish the minutes of its latest policy setting meeting.
Bank of England Governor Mark Carney and several policymakers are to testify on inflation and the economic outlook before Parliament’s Treasury Committee.
The U.S. is to release data on building permits and housing starts.
Wednesday, November 21
The UK is to release data on public sector borrowing.
The U.S. is to publish reports on initial jobless claims and durable goods orders as well as revised figures on consumer sentiment.
Thursday, November 22
Financial markets in the U.S. will be closed for the Thanksgiving holiday.
The European Central Bank is to publish the minutes of its latest policy setting meeting.
Friday, November 23
Markets in Japan will remain closed for a holiday.
The euro zone is to release data on private sector business activity.
Canada is to round up the week with figures on retail sales and inflation.
Trading in U.S. financial markets will end early after Thursday’s holiday.