Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Gold prices pressured by rate uncertainty as Fed, inflation cues loom

Published 2024-10-09, 01:30 a/m
© Reuters.
XAU/USD
-
GC
-
HG
-
SI
-
PL
-
MCU
-

Investing.com-- Gold prices fell in Asian trade on Wednesday, extending a drop from record highs amid growing bets that the Federal Reserve will cut interest rates at a slower pace in the coming months. 

A firm dollar also weighed on broader metal markets, as bets on a smaller Fed rate cut drove up U.S. Treasury yields. 

Spot gold fell 0.2% to $2,615.90 an ounce, while gold futures expiring in December fell slightly to $2,634.20 an ounce by 00:57 ET (04:57 GMT). Spot prices had hit a record high of $2,685.96 an ounce earlier this month. 

Gold eases with Fed, inflation cues on tap 

Bullion prices were pressured by uncertainty over U.S. interest rates, as an increasing number of traders bet that the Fed will cut rates by a smaller, 25 basis points in November.

The minutes of the Fed’s September meeting are due later on Wednesday, and are expected to provide more insight into the central bank’s stance. The Fed had cut rates by 50 bps in September and announced the start of an easing cycle.

But strong payrolls data for September raised doubts over just how much impetus the Fed had to keep slashing rates. This notion pushed up the dollar and weighed on precious metal prices, given that higher rates diminish their appeal. 

Consumer price index inflation data is due on Thursday and is also expected to factor into the Fed’s decision. 

Other precious metals were mixed on Wednesday, but were also nursing losses in recent sessions. Platinum futures fell 0.1% to $964.90 an ounce, while silver futures rose 0.8% to $30.865 an ounce. 

Copper prices nurse steep losses amid China woes 

Among industrial metals, copper prices rose slightly on Wednesday, but were nursing steep losses in recent sessions as optimism over more stimulus measures in top importer China ran dry.

Benchmark copper futures on the London Metal Exchange rose 0.9% to $9,844.0 a ton, while December copper futures rose 0.5% to $4.4975 a pound.

Both contracts slid around 2% on Tuesday after China’s top economic planner gave scant cues on how the government planned to implement its recent;y unveiled stimulus measures. 

Investors were also disappointed by a lack of fiscal stimulus measures from China, despite repeated calls for more targeted economic support in the world’s biggest copper importer.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.