Gold Prices Hold Steady Near Record Highs as Traders Await CPI Data | Investing.com
In the world of investing, gold prices remained stable in Asian trading on Monday, hovering close to all-time highs as investors eagerly anticipated key inflation data set to be released later in the week. The precious metal experienced some volatile swings last week amidst increased market turbulence, but ultimately finished the week slightly higher. Safe haven demand for gold also received a boost amid escalating tensions in the Middle East and Ukraine's offensive against Russia.
At 01:03 ET (05:03 GMT), gold rose 0.1% to $2,433.62 an ounce, while futures for December delivery held steady at $2,472.20 an ounce. Spot gold was just shy of reaching a record high, but potential further gains were tempered by the upcoming inflation report scheduled for Wednesday.
The inflation data for July is expected to show a slight cooling, which could give the Federal Reserve the confidence to begin cutting interest rates. The central bank is divided on whether to implement a 25 or 50 basis point cut in September, with lower interest rates generally seen as favorable for gold due to reduced opportunity costs associated with investing in the precious metal.
In the realm of other precious metals, silver rose 0.2% to $931.40 an ounce, while platinum remained stable at $27.595 an ounce.
Looking at industrial metals, copper prices inched up on Monday, although they have been on a downward trend in recent weeks amidst negative sentiment towards China, the top importer of the metal. Concerns about a global economic slowdown have also weighed on copper prices, as weaker economic growth typically translates to lower demand for the metal.
Benchmark copper on the London Metal Exchange rose 0.2% to $8,853.50 a ton, while one-month copper futures increased by 0.2% to $3.9912 a pound. Both contracts have experienced significant declines over the past month, largely driven by disappointing economic indicators from China. Of particular concern was the consecutive monthly decreases in Chinese copper imports.
Investors will be keeping a close eye on more economic data from China this week, including PMI and GDP figures scheduled for Thursday.
In conclusion, the upcoming inflation data and Federal Reserve decisions on interest rates will likely have a significant impact on the trajectory of gold prices. Additionally, the ongoing economic concerns surrounding China and the broader global economy are expected to continue influencing the performance of copper and other industrial metals. Investors should stay informed and remain vigilant in their decision-making to navigate these uncertain market conditions effectively.