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Gold prices rangebound as rate fears persist, inflation cues awaited By Investing.com – Investing.com


©Reuters.

Investing.com — Gold prices fell in Asian trading on Monday, staying within recent trading ranges as concerns grow over a prolonged period of high U.S. interest rates in anticipation of key economic data.

The yellow metal has failed to make big gains in recent weeks as a series of Federal Reserve officials warned the bank was in no hurry to cut rates.

Stagnant U.S. inflation and signs of resilience in the job market have reinforced this view, with traders now steadily bargaining.

Still, some safe-haven demand for gold helped limit losses for the yellow metal. Signs of recession in Japan and the UK, as well as continued geopolitical turmoil in the Middle East, led to demand for safe haven.

By 23:52 ET (04:52 GMT), the price fell 0.2% to $2,032.32 an ounce, while the price for March expiry was down 0.4% to $2,041.85 an ounce.

Focus on PCE inflation and GDP data

The focus was now squarely on the US data, the Fed’s preferred measure of inflation, due later this week. The data is expected to provide further clues about U.S. inflation after a series of volatile numbers in December and January.

Several Fed officials are expected to speak later this week, primarily to restate the Fed’s outlook for interest rates to rise for an extended period of time due to concerns about high inflation.

In addition to the PCE statistics, a second round of fourth-quarter statistics is also expected this week, which is expected to show some slowdown in US economic growth. However, it is not enough to justify an early interest rate cut.

A long-term rise in interest rates bodes badly for gold prices, as it increases the opportunity cost of investing in the yellow metal.

Other precious metals have also backed away from this idea. April maturities fell 0.7% to $901.35 an ounce, and May maturities fell 0.5% to $23.078 an ounce.

Copper retreats, waiting for China PMI test

Among industrial metals, copper prices fell slightly on Monday, retreating from recent gains, as markets awaited further important economic signals from China this week.

The currency due in May fell 0.2% to $3.8760 per pound.

This week’s focus will primarily be on data from China, the biggest copper importer, which is expected to provide further clues about the country’s economic recovery potential.

Chinese media reports provided some positive clues. In his recent speech, Chinese President Xi Jinping emphasized the importance of logistics and supply chains to China’s economy and promoted new equipment upgrades in the country that could boost industrial and factory activity. .

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