Investing.com — Gold prices near a one-month high in Asian trade on Friday as uncertainty over U.S. interest rates and policy under President-elect Donald Trump fueled some haven demand It was stable.
Among industrial metals, copper prices rose after recent economic stimulus measures appeared to be paying off, following strong gross domestic product (GDP) data from China, the country's biggest importer.
Metals markets benefited from a weaker dollar, with a six-week winning streak set to end on the back of weak inflation data. However, there are signs of strength in consumer spending and the labor market, with dollar bids still holding relatively well.
Gold benefited from a weaker dollar, stabilizing at $2,715.04 an ounce by midnight ET (5 p.m. Japan time). Both indexes were near their strongest levels since mid-December, but fell 0.2% to $2,745.26 an ounce.
Interest rate uncertainty and Trump concerns fuel some gold demand
The yellow metal has seen haven demand this week as traders speculate on the direction of U.S. interest rates amid mixed signals. Inflation slowed slightly in December but remained relatively high.
The data also points to the resilience of the U.S. economy, which weakens the Federal Reserve's push to cut interest rates sooner.
Markets were also nervous about how President Trump's policies would affect inflation and the economy. President Trump, who takes office on Monday, has vowed to impose hefty trade tariffs on several countries, which could support inflation over the long term.
However, overall gains in gold remained limited as the signing of a US-brokered ceasefire between Israel and Hamas signaled a decline in geopolitical tensions in the Middle East. This has eroded some of the haven demand for gold.
Other precious metals weren't as bright this week as gold. It rose 0.3% to $943.85 an ounce, while it fell 0.5% to $31.555 an ounce.
Copper upbeat after strong Chinese indicators
The benchmark price on the London Metal Exchange rose 0.2% to $9,268.50 a tonne, while March rose 0.6% to $4.4607 a tonne.
China's economic growth rate in the fourth quarter was 5.4%, exceeding expectations. This will bring China's share up to 5% in 2024, consistent with the Chinese government's target.
China's economic strength has largely been driven by a series of aggressive stimulus measures, with Beijing seen poised to provide further support in the face of U.S. trade headwinds.
Copper prices have been rising sharply over the past two weeks on expectations that further stimulus from China will boost demand. China's copper imports also hit a 13-month high in December.
