Gold prices muted amid scant trading cues; copper reverses course By


© Reuters.– Gold prices fell slightly in Asian trading on Tuesday as expectations of key signs of US inflation and the Federal Reserve held back large-scale trading, while recent strength in the dollar weighed again.

Among industrial metals, copper prices fell the most since Monday as traders pared gains from last week’s 11-month run. Weak sentiments for Chinese exporters also weighed.

Gold eased from the note last week after signals from major banks saw traders rush into the dollar, pushing it to a one-month high. Although the greenback saw some gains this week, it remained strong.

fell to $2,171.90 an hour, while its April performance was down 0.2% to $2,172.45 an hour by 00:25 ET (04:25 GMT).

Gold prices have been replaced by lower PCE prices, Fed comments on the tap

Gold treads water in anticipation of data – the Fed’s preferred inflation gauge – due this Friday. The reading is expected to have a major impact on the Fed’s view on interest rates.

Gold is expected to face short-term resistance, especially if sticky inflation numbers signal a delay in the Fed’s plan to cut interest rates this year. The central bank announced last week that it planned to cut rates by 75 basis points in 2024, although this was dependent on inflation.

Comments by Fed officials – including a member of the FOMC – are also due later this week.

Any signs of higher interest rates in the long run would weigh heavily on the metals markets.

Other precious metals lost ground on Tuesday. It fell 0.2% to $914.60 an ounce, while it was down 0.4% to $24.802 an ounce.

Copper prices fall from 11-month high as China expands

on the London Metal Exchange it was down 0.3% to $8,839.00 a tonne, while it was down 0.4% to $3.9947 a pound.

Both contracts ended the 11-month sell-off that took place last week, as the latest data from China showed that stocks of the world’s biggest exporter of copper remained weak.

The data offset positive signals from Chinese copper refiners, particularly those seeking to curb production and tighten global supply.

Bullish sentiment in China has also grown as the economy continues to expand thanks to more stimulus from Beijing, as the country’s economy has shown no signs of improvement.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *