Copper saw losses on the final trading day of the week as a downbeat outlook for China’s economic prosperity continued to weigh on the base metal. Friday’s losses of over 2%, ensured that all of the mid-week gains following strong manufacturing and durable goods data from Europe and the US respectively were decisively eroded. Meanwhile, gold also saw losses on Friday with a bout of profit taking following the high seen yesterday in reaction to another influential article by Fed watcher Jon Hilsenrath. WSJ’s Hilsenrath wrote that the Fed will not scale back its bond-buying programme at next week’s meeting, and that the central bank may reduce its 6.5% unemployment threshold for raising rates. However, subsequent USD-weakness seen during Friday’s session was not enough to prevent gold or copper from posting losses for the day, although gold does end the week up just under 1.5%. Looking ahead to next week’s schedule, the afore mentioned FOMC meeting will take centre stage; however, markets will look out for other key risk events including the US non-farm payrolls report and Chinese manufacturing PMI data, as well as rate decisions from the BoE and ECB.
26 Jul 2013 - 18:30 - - Source: RANsquawk
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