Gold Prices Remain Steady in Asian Trade
Gold Prices Hold Near Record High
Gold prices stabilized in Asian trading on Thursday, hovering close to a record high as traders showed interest in the precious metal ahead of key information on U.S. inflation and interest rates.
Copper Prices Rebound on Chinese Output Cuts
Copper prices bounced back from recent losses, approaching 11-month highs after reports indicated that Chinese copper smelters were considering reducing production.
Bullion Prices Recover Amid Rate Cut Speculations
Gold prices regained much of their losses this week as expectations of a potential interest rate cut by the Federal Reserve as early as June persisted. However, the strength of the dollar, which remained near a one-month peak, kept gold prices slightly below their record levels.
Gold Prices Hovering Near Record Levels
Gold futures held steady at $2,195.34 per ounce, while April futures remained stable at $2,215.80 per ounce by 01:09 ET (05:09 GMT). Spot prices were just below the all-time high of $2,222.90 per ounce reached last week.
Focus on PCE Data and Fed Speakers
The spotlight now shifts to the Personal Consumption Expenditures (PCE) data – the Federal Reserve’s preferred inflation measure – scheduled for release on Friday. Any indications of easing inflation could lead to significant gains in the metal markets, increasing the likelihood of early interest rate cuts.
Updates from Fed Officials Awaited
Additionally, speeches from Federal Reserve members are expected on Friday. The remarks from these officials on potential interest rate cuts will be closely monitored, especially after some Fed representatives adopted a relatively hawkish stance earlier this week.
Market Sentiment Impacting Gold Prices
Governor Christopher Waller cautioned against rushing into rate cuts, citing persistent inflation and the resilience of the U.S. economy. Higher interest rates could negatively impact gold prices by raising the opportunity cost of investing in the precious metal.
Impact on Other Precious Metals
This sentiment also affected other precious metals, with silver rising 0.3% to $914.0 per ounce, while platinum remained stable at $24.777 per ounce.
Chinese Supply Concerns Boost Copper Prices
Copper prices on the London Metal Exchange climbed 0.5% to $8,913.0 per ton, while nickel rose 0.4% to $4.0303 per pound. Reports suggested that major Chinese copper smelters were contemplating production cuts, potentially tightening the refined copper market.
Chinese Copper Inventories Offset Gains
While reports of Chinese production cuts initially drove copper prices to 11-month highs, data revealing robust Chinese copper inventories tempered market expectations of supply tightness.
