YEREVAN, December 12. /ARKA/. At the beginning of the last week attempts of precious metal to continue its growth on the background of positive news from Italy where the government undertook steps on toughening the budget policy, failed.
The main reasons of it were the announcements of the leaders of Germany and France regarding new measures of financial regulation on the eve of the next summit of EU leaders, as well as the news from the agency Standard & Poor’s that credit ratings of 15 of 17 countries of euro zone were placed on the list to review, aiming at their reduction.
Last week, quotes of gold suffered on Thursday after the European regulator decreased the rate by 0.25% to 1.0%. But the announcement of Mr. Draghi that ECB does not want to expand the program of purchases of debt of affected countries, rained down precious metal costs dropping them to weekly lows – 1701.97 USD per troy ounce.
Next week dynamics of gold will depend on the results of the summit of EU leaders in Brussels. Refusal of Great Britain to conduct a single budgetary-tax policy in EU, can press the gold. Quotes to support gold in the upcoming five trading days can show economic statistics about consumer and industrial inflation and retail trade for November, as well as capital investment flow for October. European news say that index of consumer prices of eurozone in November, index of business environment in Germany from the institute Zew in November should be singled out. In case statistics will be positive, gold may show ascending dynamics.
Copper price in futures market last week reduced by 0.45% to 3.5535 USD per pound of copper. The main factor of reduction of red metal became strengthening of USD on the background of reduction of the main percent rate by European regulator on Thursday, December 8.
Next week copper price will be defined by economic news from USA and eurozone, as well as the events around the problems of Europe. On the background of the refusal of Great Britain in participation of the establishment of new quality union in EU on quotes of red metal, will probably remain under pressure.
In case if the predictions come true, and macroeconomic statistics from the U.S. and the eurozone will be moderately positive, the cost of copper may increase. The assumed range of fluctuations in copper price in futures market next week will be 3.36–3.65 USD per pound of copper. –0–
Mikael Verdyan, analyst of FOREX CLUB
The opinion of the author does not necessarily coincide with the position of the agency.
