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Investing.com — Gold prices fell slightly in Asian trading on Tuesday on hopes for a key signal on U.S. inflation and the Federal Reserve refrained from large trades, while recent dollar strength also weighed on the market. It became.
Among industrial metals, copper prices have fallen sharply since Monday as traders took profits from last week’s surge to an 11-month high. Weaker sentiment toward China, the largest importer, also weighed on the economy.
Gold prices have fallen from last week’s all-time high, pushing gold to a one-month high after dovish signals from major central banks sent traders rushing into the dollar. Despite some profit-taking this week, the dollar remained relatively strong.
After holding steady at $2,171.90 an ounce, the price expiring in April fell 0.2% to $2,172.45 an ounce by 12:25 ET (4:25 p.m. Japan time).
Gold prices slump due to PCE inflation, Fed comments one after another
Gold has been stuck waiting for data on the Fed’s preferred inflation measure to be released this Friday. This number is widely expected to be factored into the Fed’s interest rate outlook.
Gold is expected to face some resistance in the near-term, especially if robust inflation numbers point to a possible delay in the Fed’s rate cut plans this year. The central bank signaled last week that it plans to cut interest rates by 75 basis points in 2024, although it still depends on inflation.
Comments from senior Fed officials, including FOMC members, are also expected later this week.
Signs that interest rates will remain higher for an extended period of time are likely to weigh on metals markets.
Other precious metals also fell on Tuesday. fell 0.2% to $914.60 an ounce and fell 0.4% to $24.802 an ounce.
Copper prices fall from 11-month high as Chinese sentiment worsens
On the London Metal Exchange, it fell 0.3% to $8,839.00 a tonne and fell 0.4% to $3.9947 a pound.
Both contracts are trading well off last week’s 11-month highs, as recent Chinese inventory data showed copper inventories in the world’s largest importer remained healthy.
The data largely offset positive signals from China’s top copper refiners, particularly that they intend to curb production and tighten global supplies.
Broad sentiment towards China also worsened, with the country’s economy showing few signs of improvement and investors growing impatient for more stimulus from the Chinese government.
