Investing.com - This week’s U.S. inflation report on Thursday will be in the spotlight as a strong reading could bolster the case for the Federal Reserve to stick to a gradual pace of rate hikes this year, which is typically bearish for gold.
Gold prices slid on Friday but still managed to post a weekly gain, as the dollar weakened.
Gold futures for August delivery were down $2.9 or 0.23% to settle at $1,255.9 on the Comex division of the New York Mercantile Exchange late Friday. For the week, the precious metal gained 0.24%.
The dollar slid lower against a currency basket on Friday after data showing that while the U.S. economy created more jobs than expected in June, wage growth rose at a slower than expected pace and the unemployment rate ticked higher.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.39% to 93.76 late Friday. For the week, the dollar was down 0.61%.
The dollar had already come under pressure earlier in the day after the U.S. and China imposed tariffs on each other’s imports, escalating a trade spat that many investors fear will hit global growth.
Gold prices have fallen 3.86% so far this year, hitting 2018 lows of $1,237.00 last week.
Prices have slumped despite escalating trade tensions and uncertainty over the outlook for global growth as a stronger dollar and higher interest rates have negated any boost from safe haven demand.
Expectations for higher rates tend to be bearish for gold, which struggles to compete with yield-bearing assets when rates rise, while a stronger U.S. currency makes gold and other dollar-denominated commodities more expensive for foreign investors.
Elsewhere in precious metals trading, silver futures settled down 0.17% at $16.07 a troy ounce, for a weekly decline of 0.76%. Platinum settled at $847.00, up 0.67%, bringing the week’s losses to 1.16%.
Among base metals, copper was down 0.25% at $2.819, for a weekly loss of 4.68%.
Ahead of the coming week, Investing.com has compiled a list of significant events likely to affect the markets.
Monday, July 9
Bank of Japan Governor Haruhiko Kuroda is to speak at an event in Tokyo.
Bank of England Deputy Governor Ben Broadbent is to speak at an event in London.
European Central Bank President Mario Draghi is to testify about the economy, monetary policy, and virtual currencies before the European Parliament in Brussels.
Tuesday, July 10
Australia is to release data on business confidence.
China is to report on consumer price inflation.
The UK is to release monthly data on economic growth, along with figures on manufacturing production and trade.
The ZEW Institute is to report on German economic sentiment.
Canada is due to release data on building permits.
Wednesday, July 11
ECB head Mario Draghi is to speak at the opening of the bank’s statistics conference in Frankfurt.
The U.S. is to release data on producer price inflation.
The Bank of Canada is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision. The announcement is to be followed by a press conference.
BoE Governor Mark Carney is to speak at an event in Boston.
New York Fed President John Williams is to speak at an event in Brooklyn.
Thursday, July 12
The ECB is to publish the minutes of its latest monetary policy meeting.
Canada is to report on new house price inflation.
The U.S. is to release data on consumer price inflation and jobless claims.
Friday, July 13
China is to publish trade data.
The U.S. is to round up the week with preliminary data on consumer sentiment.