MTECHTIPS-Gold / Silver / Copper futures – weekly outlook: July 17 – 21

MTECHTIPS-Gold / Silver / Copper futures – weekly outlook: July 17 – 21

MTECHTIPS-Gold prices rose to two-week highs on Friday as weak U.S added to doubts over whether the Federal Reserve would raise interest rates for a third time this year. Gold futures for August delivery ended up 0.95% at $1,228.88 on the Comex division of the New York Mercantile Exchange after rising as high as $1,232.7 earlier, the most since July 3. The precious metal ended the week with gains of 1.32%. U.S. consumer price inflation slowed to 1.6% in June from 1.9% in May, the Labor Department said on Friday. Consumer spending was also weaker than expected, with retail sales falling 0.2% in June, compared to expectations of a 0.1% rise. The Fed hiked rates at its June meeting and stuck to its forecast for one more rate hike this year but the sluggish inflation outlook has raised questions over whether officials will be able to stick to their planned tightening path. In testimony before Congress on Wednesday, Fed Chair Janet Yellen said the economy is on a strong enough footing for the Fed to raise rates, but she also reiterated that inflation is below target and noted that it is a particular “uncertainty” that could affect monetary policy. Expectations that rates will stay low tend to boost gold, which struggles to compete with yield-bearing investments when borrowing costs rise

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