Investing.com — Gold prices fell in Asian markets on Monday, with rising hopes of a U.S. interest rate cut providing limited support as traders awaited further signs from the Federal Reserve and the U.S. economy this week.
Gold remained within an established trading range through most of June, barely moving even as the dollar weakened.
As of 00:09 ET (04:09 GMT), it was down slightly at $2,325.74 an ounce, while August maturities were down 0.2 percent at $2,336.05 an ounce.
Gold edged higher amid growing expectations of a September rate cut
Sentiment in metals markets, particularly towards gold, remained tense even as traders grew hopes of a rate cut in September following last week’s data.
It fell more than 0.2% on Monday, extending the previous day’s losses.
Traders rate the likelihood of a 25 basis point cut in September at about 58%.
The prospect of lower interest rates bodes well for metals markets, but prices did little to lift them this week as traders awaited a string of signs from the Fed and the economy.
Federal Reserve Chairman Jerome Powell is scheduled to speak on Tuesday, with another scheduled for Wednesday.
Further June data is due to be released on Friday.
Other precious metals trended lower on Monday, falling 0.5% to $1,004.60 an ounce and 0.5% to $29.405 an ounce.
Copper prices fall on mixed China PMI
Among industrial metals, copper prices fell on Monday, extending a recent slide as mixed economic data from China, the largest importer, dampened sentiment towards the metal.
The London Metal Exchange benchmark fell 0.6% to $9,545.50 a tonne, while one-month contracts fell 0.5% to $4.3550 a pound.
Sentiment towards China worsened further this week after government data released on Sunday showed the country’s manufacturing sector contracted for a second straight month.
But data released Monday showed the sector grew at its fastest pace in the past three years.
Mixed data left traders uncertain about how the economic recovery will progress in the world’s largest copper importer.
Copper prices recorded a steep decline through June due to concerns about China.
