Gold prices rise slightly after weekly losses; inflation in focus

FXStreet
Updated May 27, 2024 05:40
Mitrade

Investing.com-- Gold prices rose slightly in Asian trade on Monday, recouping some of last week’s losses as traders remained cautious towards metal markets ahead of a key U.S. inflation reading this week.


Broader trading volumes were also subdued on account of market holidays in the UK and the U.S., while anticipation more cues on U.S. interest rates also deterred big bets. 


Among industrial metals, copper prices also rose, recovering after a tumble from record highs last week.


Spot gold rose 0.4% to $2,343.23 an ounce, while gold futures expiring in June rose 0.4% to $2,344.10 an ounce by 00:33 ET (04:33 GMT). Spot prices were also nursing a tumble from record highs.


PCE test looms as waning rate cut bets batter gold


Focus this week was squarely on PCE price index data- the Federal Reserve’s preferred inflation gauge. The reading is due on Friday.


The data comes after a string of warnings from Fed officials, on sticky inflation, saw traders largely price out expectations for rate cuts by the central bank this year. Traders are now pricing in a greater probability that the Fed will keep rates unchanged in September, which was initially being pegged as the most likely time for a rate cut, according to the CME Fedwatch tool.


This notion pressured gold and broader metal prices in recent weeks, with traders growing more biased towards the dollar and Treasuries. 


Waning safe haven demand for gold also weighed on the yellow metal. 


Other precious metals rose on Monday, also recovering from last week’s losses. Platinum futures rose 1.2% to $1,048.70 an ounce, while silver futures rose 1.7% to $31.023 an ounce. 


Copper prices steady from last week’s plunge


One-month copper futures rose 0.3% to $4.7720 a pound, as a speculative frenzy, which had fueled a rally to record highs in May, now wound down.


Focus was now on whether physical copper markets were as tight as initially speculated, and whether supply will remain steady in the coming months.


Markets were also awaiting more cues from top copper importer China, especially on how Beijing planned to fund and execute a swathe of recently unveiled stimulus measures. 

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Do you find this article useful?
Related Articles
placeholder
Gold trades in familiar territory amid mixed signals from US economyGold (XAU/USD) trades marginally higher on Friday, exchanging hands just above the $2,300 mark during the early European session.
Author  FXStreet
Gold (XAU/USD) trades marginally higher on Friday, exchanging hands just above the $2,300 mark during the early European session.
placeholder
Gold price hits two-week high on weaker US jobs data ahead of NFPGold hit a two-week high of $2,378 on Thursday after the US Bureau of Labor Statistics (BLS) announced weaker-than-expected jobs data that kept US Treasury bond yields virtually unchanged, a tailwind for the golden metal.
Author  FXStreet
Gold hit a two-week high of $2,378 on Thursday after the US Bureau of Labor Statistics (BLS) announced weaker-than-expected jobs data that kept US Treasury bond yields virtually unchanged, a tailwind for the golden metal.
placeholder
Gold trades higher as central banks start rate-cutting cycleGold (XAU/USD) is trading up around a quarter of a percent in the $2,360s on Thursday.
Author  FXStreet
Gold (XAU/USD) is trading up around a quarter of a percent in the $2,360s on Thursday.
placeholder
Gold prices steady as rate cut speculation puts dollar at 2-mth lowInvesting.com-- Gold prices fell slightly in Asian trade on Tuesday, but were sitting on some gains from the prior session as signs of a cooling U.S. economy ramped up expectations of rate cuts and dr
Author  Investing.com
Investing.com-- Gold prices fell slightly in Asian trade on Tuesday, but were sitting on some gains from the prior session as signs of a cooling U.S. economy ramped up expectations of rate cuts and dr
placeholder
Gold Price Forecast: XAU/USD holds below $2,350, geopolitical risks remain in focusThe yellow metal trims gains after the US Personal Consumption Expenditure (PCE) data for April showed price pressures cooled in April. Meanwhile, the ongoing Middle East geopolitical risks might provide some support to gold, traditional safe-haven assets.
Author  FXStreet
The yellow metal trims gains after the US Personal Consumption Expenditure (PCE) data for April showed price pressures cooled in April. Meanwhile, the ongoing Middle East geopolitical risks might provide some support to gold, traditional safe-haven assets.