🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Gold prices rangebound around $2,300 amid rate jitters, inflation watch

Published 2024/06/25, 06:28
© Reuters.
GC
-

Investing.com-- Gold prices fell in Asian trade on Tuesday, sticking to a tight trading range in the low $2,300s as recent strength in the dollar and anticipation of key inflation data kept traders averse to the yellow metal.

Metal markets took limited relief from an overnight drop in the dollar, as the greenback still remained in favor amid uncertainty over U.S. interest rates.

Spot gold fell 0.4% to $2,325.56 an ounce, while gold futures fell 0.3% to $2,337.35 an ounce by 00:10 ET (04:10 GMT). 

Gold stuck around $2,300 with inflation data on tap

The yellow metal fell into a trading range around the low $2,300 an ounce level over the past week, as traders grew uncertain over the prospect of U.S. interest rate cuts this year.

While inflation data for May was somewhat encouraging, it still showed price pressures remaining relatively heady. Unexpectedly strong purchasing managers index prints for June also sparked concerns that strength in the U.S. economy will keep rates high for longer.

Focus this week is squarely on PCE price index data, which is the Federal Reserve’s preferred inflation gauge. The reading is due on Friday and is widely expected to show inflation cooling slightly but remaining well above the central bank’s 2% annual target. 

High rates bode poorly for metal markets, given that they increase the opportunity cost of investing in non-yielding assets. 

Other precious metals were mixed on Tuesday, but were also within recently established trading ranges. Platinum futures rose 0.4% to $1,016.55 an ounce, while silver futures fell 0.1% to $29.817 an ounce.

Copper prices rise, but China jitters keep sentiment fragile 

Among industrial metals, copper prices advanced on Tuesday, recovering marginally from recent losses.

But sentiment towards the red metal was stymied by concerns over its top importer, China. Beijing was seen raising the prospect of a trade war with the European Union and the U.S., in the face of steep import duties on Chinese electric vehicles. 

Benchmark copper futures on the London Metal Exchange rose 0.4% to $9,703.50 a tonne, while one-month copper futures rose 0.5% to $4.4413 a pound.

Both contracts were nursing steep declines in recent weeks, as sentiment towards China soured and as doubts emerged over the prospect of a global economic recovery this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.