Gold briefly dipped below $1,700 an ounce on Friday before ending slightly lower, suffering its fifth straight weekly decline. Meanwhile, copper tumbled to its weakest level in 20 months as recession fears continued to weigh on industrial metals prices.
for August delivery fell $2.20, or 0.1%, to end at $1,703.60 an ounce on Comex, after dipping as low as $1,696.60 during the session. The yellow metal fell 2.2% for the week.
for September delivery rose 2% to $18.594 an ounce.
for October delivery rose $1.6% to $830.90 an ounce.
for September delivery shed 3.5% to finish at $1,829.40 an ounce.
for September delivery rose 1% to $3.234 a pound.
What analysts are saying A team of commodity strategists at UBS downgraded their gold forecasts on Friday. They now expect the yellow metal to trade as low as $1,600 per ounce by the end of 2022, before staging a slight recovery in 2023. “We think it’s too early to buy gold at current levels and still advise protecting existing positions. We see opportunities to be more positive in 2023,” the UBS precious metals team wrote in a note to clients. They also downgraded their forecast for platinum, which has fallen sharply over the past two months to its weakest level since 2018. “A combination of factors have weighed on platinum: A lower gold price and high energy prices, and a potential cut to Russian gas exports to Europe, increasing the risk of Europe heading into a recession which would hurt platinum demand given Europe accounts for about 20% of platinum demand,” the UBS team wrote. U.S. consumers boosted retail spending in June by a solid 1% in light of the stickier inflation and uncertain economic forecasts, but some of the growth can reflect higher prices of gasoline and food. Economists polled by The Wall Street Journal had forecast a 0.9% increase in retail sales last month. “A solid increase in retail sales—with spending on most categories besides gas and groceries rising faster than inflation—is further evidence that the U.S. economy continued to expand in June,” said Bill Adams, chief economist for Comerica Bank in Dallas, in an email. The University of Michigan’s gauge of consumer sentiment survey inflation expectations over the next year fell to 5.2% in July from 5.3%. The industrial production in the United States was down 0.2% from a month earlier. “With national average gasoline prices coming back down in the first half of July, sentiment could improve, and recession fears ease,” Adams said. “Even so, the U.S. economy is close to stalling out, and one more big shock would be enough to push it into recession. That shock m …