Investing.com — Gold prices rose in Asian trade on Wednesday, keeping U.S. interest rates on track while continuing to eye record highs on rising demand for safe haven after Taiwan’s devastating earthquake. Uncertainty surrounding gold prices also boosted demand for gold.
Demand for gold was also boosted by a broad decline in stock markets on deteriorating risk appetite, even as the dollar and US Treasury yields soared following hawkish comments from US Federal Reserve officials. stimulated.
Risk appetite took another blow Wednesday after an earthquake in Taiwan damaged the island’s infrastructure and major semiconductor manufacturing plants, and triggered a tsunami warning for parts of Japan.
June expiry rose 1.1% to $2,306.25 an ounce, up 0.3% to $2,286.40 an ounce and remained in sight of Tuesday’s all-time high of $2,288.43 as of 12:47 ET. The price fell just below its lifetime high of $2,308.85 per ounce (04:47 GMT).
The yellow metal rose further on Wednesday after retreating from its 4-1.5-month high.
Despite Fed pressure, gold prices keep an eye on $2,300
Increased demand for safe-haven assets has largely helped gold prices overcome growing concerns about longer-term US interest rates.
Multiple Fed officials said in separate speeches that persistently high inflation and a strong labor market could delay the Fed’s rate cut plans.
Their comments come just days before key data for March is released this Friday. Statistics have consistently exceeded expectations in recent months as the U.S. labor market remains strong.
Other precious metals also benefited from improved safe-haven demand and a weaker dollar. It rose 0.3% to $940.05 an ounce and rose 2.2% to $26.480 an ounce.
Copper prices rise on positive China data
Copper prices rose on Wednesday after strong Purchasing Managers Index (PMI) data from China, the biggest importer of industrial metals, remains on track for 11-month highs. .
On the London Metal Exchange, it rose 0.6% to $9,070.50 a tonne and rose 0.5% to $4.1022 a pound.
Private PMI data on Wednesday showed China’s growth rate improved in March. The figures were released days after China’s official PMI turned positive, indicating improving economic conditions in the world’s largest copper importer.
