Investing.com — Gold prices rose in Asian markets on Thursday, hovering near record highs as the dollar's rebound slowed ahead of the release of a key inflation reading that is likely to influence prospects for interest rate cuts.
Safe-haven demand also boosted gold prices, especially after disappointing earnings results from market darling Nvidia Corporation (NASDAQ:) rattled global stock markets.
As of 00:50 ET (04:50 GMT), it was up 0.4% to $2,515.76 an ounce, while December maturities were up 0.4% to $2,515.91 an ounce.
Gold remains near record highs before inflation, GDP
Spot prices are less than $20 away from the all-time high of $2,532.05 an ounce recorded last week.
Since then, gold has struggled to reach new highs, but it has remained relatively strong on the back of growing confidence that the Federal Reserve will cut interest rates in September, a scenario that favors gold. The dollar rebounded sharply from a 13-month low this week, but a weaker market also supported the metals market.
Safe-haven demand also contributed to gold's strength, with tensions in the Middle East showing few signs of easing and the halt in Libya's oil production adding new uncertainty.
Its safe-haven trade was further fuelled by a drop in shares of market favourite Nvidia, which sparked a broader stock market sell-off on concerns that artificial intelligence trading was cooling.
But attention in the coming days will be on further economic data from the U.S. Preliminary indicators released last month showed the economy continued to perform well in the second quarter, but revised data is due to be released later on Thursday.
More attention will be focused on economic data on Friday, the Fed's preferred inflation gauge, which is likely to influence rate cut expectations.
According to the report, the market is divided on whether the September rate cut should be 25 basis points or 50 basis points.
The prospect of lower interest rates weakened the dollar and boosted the metals market in general, which mainly lagged gold, which rose 0.5% to $942.50 an ounce and gold rose 0.8% to $29.858 an ounce.
Copper stable, Chinese market remains weak
Among industrial metals, copper prices rose slightly on Thursday but the rally seen in recent weeks appears to have dried up.
The London Metal Exchange's benchmark price rose 0.3 percent to $9,268.50 a tonne, while one-month contracts rose 0.1 percent to $4.2190 a pound.
But copper's recent rally appears to be losing steam, especially as sentiment towards China, its largest importer, remains subdued by fears of a renewed trade war with the West.
Nevertheless, expectations are growing that global copper demand will improve on the back of improved economic growth due to lower interest rates.
