Investing.com — Gold prices fell slightly on Friday, paring some of this week’s gains, as comments from a number of Federal Reserve officials gave a more subdued outlook on interest rate cuts.
The yellow metal rose to nearly $2,400 an ounce this week on the heels of weak U.S. economic data. However, it fell back from this level on Thursday and Friday.
Prices for June maturities fell slightly to $2,381.10 an ounce by 12:19 pm ET (4:19 pm Japan time).
Gold falls as Fed officials downplay interest rate cuts, but weekly gains expected
The yellow metal fell on Thursday after a series of Federal Reserve officials cautioned against betting on an immediate rate cut.
Several members of the central bank’s rate-setting committee said the central bank needed further convincing that inflation was falling beyond April’s slightly softer inflation readings.
As a result, traders have begun pricing in some expectations for a September interest rate cut. This week, the stock has rebounded from an early decline.
Still, the data is softer than some had expected, with gold expected to rise 0.7% for the week.
The yellow metal was also eyeing a record high above $2,430 an ounce, but reaching that level seemed unlikely in the short term.
Other precious metals fell on Friday but were on track for big gains for the week. It fell 0.2% this week but rose 6.2%, and it fell 0.4% but rose 4.5% this week.
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Copper mixed with medium Chinese style
Among industrial metals, one-month copper futures fell from a two-year high on moderate economic data. However, three-month copper futures rose on the promise of a great week as the market bet on tight supplies in the coming months and an eventual recovery in demand.
On the London Metal Exchange, it rose 0.6% to $10,445.0 a tonne and rose 0.3% to $4.8935 a pound.
Statistics released by China on Friday painted a mixed picture of the economy. While growth exceeded expectations, growth slowed and contracted at an accelerating rate. Growth in Chinese language has also slowed down.
The statistics point to an uncertain outlook for the world’s biggest copper importer as it launches further stimulus measures to boost growth.
Three-month copper futures rose on expectations for a recovery in demand, rising nearly 4% this week. It also hit a two-year high.
