Investing.com — Gold prices edged down in Asian markets on Wednesday, extending losses from the previous day as traders remained leaning to the dollar in anticipation of a key U.S. inflation reading.
Gold also remained stuck in the low $2,300 per ounce trading range established throughout much of June as prospects of rising U.S. interest rates clouded the price outlook.
As of 00:17 ET (04:17 GMT), it was down 0.1% to $2,317.02 an ounce, while August maturities were down 0.1% to $2,328.40 an ounce.
Gold Prices Range-bound on PCE Inflation
Gold has been trending lower this week with limited trading volumes as the market awaits inflation data due this week.
The reading, due to be released on Friday, is the Federal Reserve’s preferred inflation gauge and is likely to influence the central bank’s interest rate outlook.
Recent signs of a recovery in the U.S. economy, including strength in purchasing managers’ indexes and consumer confidence indicators, have raised concerns that the Fed may have enough room to keep interest rates high for a long time, a view echoed by several Fed officials this week.
Revised first-quarter data due this week will also provide further clues about the U.S. economy.
Other precious metals rose on Wednesday but gains were limited by concerns that interest rates will remain high in the coming months, weighing on prices. Strength in gold, which is near a two-month high, also weighed on precious metals prices.
It rose 0.6% to $1,005.25 an ounce and 0.2% to $29.258 an ounce.
Copper prices slump amid China concerns
Among industrial metals, copper prices were flat on Wednesday, extending a sharp decline into June amid growing caution about China, the largest importer.
The London Metal Exchange benchmark fell 0.1 percent to $9,561.50 a tonne, while one-month contracts were steady at $4.3695 a pound.
The prospect of a trade war between China and the West dampened sentiment towards copper, especially after the European Union and the United States introduced heavy import tariffs on Chinese electric vehicles.
The tariffs also pose a further headwind for the electric vehicle industry, which is expected to be a major source of copper demand over the next few years.
