Gold prices steady amid rate-cut uncertainty; Copper cools from China gains
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Investing.com-- Gold prices edged lower in Asian trade on Wednesday, sticking to a trading range established over the past week as markets grew more uncertain over U.S. interest rate cuts this year.
Among industrial metals, copper prices inched lower after increased optimism over China drove stellar gains earlier this week.
Gold was reeling from a weak start to 2024, having fallen as low as $2,000 an ounce earlier this month as traders began steadily pricing out bets that the Federal Reserve will cut interest rates as soon as March 2024.
But the yellow metal rebounded on some safe-haven demand, especially as geopolitical conditions in the Middle East worsened. This rebound also saw gold establish a trading range of between $2,000 to about $2,050 an ounce over the past week.
Spot gold fell 0.3% to $2,023.92 an ounce, while gold futures expiring in February fell 0.1% to $2,024.65 an ounce by 00:17 ET (05:17 GMT).
Strength in the dollar- which traded near six-week highs on Wednesday- also weighed on gold prices.
US economic data, Fed meeting awaited
Metal markets were now seeking more cues on when the Fed could potentially begin trimming interest rates this year.
Fourth-quarter gross domestic product data due on Thursday is expected to show some cooling in U.S. economic growth, while PCE price index >Copper prices edge lower after China-driven gains
Copper futures expiring in March fell 0.2% to $3.7983 a pound, but were trading up 0.3% this week.
Reports of more planned stimulus measures in China helped copper prices rebound sharply from a near two-month low this week, amid growing hopes for an economic recovery in the world’s largest copper importer.
Still, copper was also nursing a weak start to 2024, as a swathe of economic readings for December showed little improvement in Chinese economic growth. Fears of slowing Chinese demand were a key weight on copper prices over the past two years.
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Gold prices steady amid rate-cut uncertainty; Copper cools from China gains
