Investing.com — Gold prices rose in Asian markets on Thursday, helped by a decline in the dollar and Treasury yields on growing expectations of a U.S. interest rate cut ahead of the release of a key inflation reading.
Gold edged higher this week, buoyed by reports that emerging market central banks are stockpiling the metal, and dovish comments from Federal Reserve Chairman Jerome Powell also helped boost the metal.
As of 00:42 ET (04:42 GMT), it was up 0.4% to $2,381.73 an ounce, while August maturities were up 0.3% to $2,386.75 an ounce.
Gold rises as Powell’s comments focus on CPI data
The precious metal was trading less than $100 below its all-time high after Powell signaled progress in recent months to tame inflation.
The Fed chairman also said inflation does not necessarily need to fall below its 2 percent target for the central bank to start cutting interest rates, but the bank needs more confidence that inflation is moderating.
Following Powell’s comments, traders largely held firm to the September cut, estimating the likelihood of a 25 basis point cut in September at 72.5%.
Powell’s comments pushed stock prices lower and attention turned to upcoming data due later on Thursday that is widely expected to show a slight slowdown in inflation.
Other precious metals were mixed on Thursday but saw some gains this week: Gold prices fell 0.2% to $1,005.25 an ounce, while gold prices, which have significantly outperformed the gold price in recent months, rose 0.9% to $31.290 an ounce.
Still, analysts at TD Securities said gold is likely to rise in the near term as increased gold purchases by emerging market central banks and clearer indications of a U.S. interest rate cut work in the metal’s favour.
Copper rises as dollar weakens, awaiting further signs from China
Among industrial metals, copper prices rose on Thursday, helped by a weaker dollar, but have fallen sharply in recent trade after disappointing economic data from China, the largest importer.
The London Metal Exchange benchmark rose 0.1% to $9,914.50 a tonne, while one-month contracts rose 0.5% to $4.6147 a pound.
Copper prices have fallen this week after data from China disappointed markets and raised concerns about a slowing economic recovery in the country. Data from China is due to be released on Friday, providing further clues about the country.
