Investing.com – Gold prices rose slightly in Asian trading on Thursday as markets returned to trading after the Christmas holiday, but investors remained cautious following the US Federal Reserve’s hawkish leanings. , the increase was limited.
Volume was thin as traders also refrained from placing large bets during the holiday-shortened week.
By midnight ET (5 p.m. GMT), the stock was up 0.4% at $2,627.55 an ounce, and by February expiry it was up 0.1% at $2,643.86 an ounce.
Geopolitical tensions in the Middle East also contributed to the rise in bullion prices.
Palestinian militant group Hamas and Israel on Wednesday accused each other of sabotaging a ceasefire agreement, with Hamas accusing Israel of imposing additional conditions and Israeli Prime Minister Benjamin Netanyahu saying Hamas had broken a prior agreement. insisted.
Amid market uncertainty, gold is considered a safe-haven asset.
US dollar weakens but still near two-year high
It fell slightly in Asian trading on Thursday, but remains close to a two-year high hit last week.
Last week's Fed hawkishness gave the dollar new strength, as higher interest rates increase returns on dollar-denominated assets and make the greenback more attractive.
A strong dollar often puts pressure on gold prices, making the yellow metal more expensive for buyers using other currencies.
Gold prices plunged last week after the Federal Reserve's policy meeting suggested interest rates would remain high for an extended period of time.
Rising interest rates will put downward pressure on gold as the opportunity cost of owning gold increases, making it more attractive compared to interest-bearing assets such as bonds.
The yellow metal made small moves this week after falling more than 1% the previous week, reflecting uncertainty about the metal's outlook.
Other valuables were mostly stable on Thursday. It was unchanged at $960.20 per ounce and settled at $30.273 per ounce.
Copper gradually rises on the back of China's stimulus plan, the upper limit rises as the dollar strengthens
Among industrial metals, Reuters reports that Chinese authorities plan to issue a record 3 trillion yuan ($411 billion) in special bonds next year to step up fiscal efforts to stimulate the struggling economy. As a result, prices rose little by little.
Red metals were unable to take full advantage of the news, weighed down by a strong dollar.
Analysts also blamed weak copper prices on a seasonal slump, as industrial production and construction projects often slow as companies and projects prepare for year-end closures and holidays. There is.
The January copper contract, the most traded on the Shanghai Futures Exchange (SHFE), rose 0.2% to 74,220 yuan per tonne.
The benchmark copper contract on the London Metal Exchange closed on Thursday due to a public holiday.
