Gold closed down for the fourth consecutive week. Gold ended at 1083.10 after falling as low as $1079. Gold opened the past week at 1088.60 and made
Gold is set to rebound from a five-year low on Monday while other commodities keep trading on their own fundamentals as the terrorist attacks in Paris won’t change much for global supply and demand of raw materials from copper to coffee. Gold may get a boost as a haven while for most commodities, “there’s no fundamental reason for a prolonged weakness” due to the terrorist attacks, Market signs point to a stronger dollar and weaker euro as the Federal Reserve looks to raise interest rates and the European Central Bank prepares for more monetary easing.
Analysts said the attack was likely to hit tourism in Paris, which could have consequences for the rest of France and Europe. “The truly awful events in Paris could certainly have a significant negative impact on consumer confidence in the near term at least,” said Howard Archer, chief UK and European economist at IHS Global Insight.
“There could also be an adverse impact on tourism in some European countries where people think attacks are most likely to occur – not just in France.”
That’s the outlook from Eugene Weinberg of Commerzbank AG, Fabio Scacciavillani of Oman Investment Fund, and Edward Bell of Dubai-based bank Emirates NBD PJSC for commodities Monday after terrorist attacks in Paris on Friday.
Apart from the fall-out from Paris, the investor focus this week will be on the US Federal Reserve’s latest policy meeting minutes, released Wednesday, for any additional clues on the timing of interest rate lift-off in the world’s biggest economy.
Stocks are expected to tumble across the world on Monday as investors seek out safe havens in the wake of Friday night’s terrorist attacks in Paris.
With sentiment already weak before the outrage, equity markets – starting Asia on Monday – are widely tipped to sell off as investors shift into traditionally less-risky assets such as the US dollar, Japanese yen, government bonds and gold.