Gold prices rise slightly after weekly losses; inflation in focus

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

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.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Gold price drops to $3,300 neighborhood amid modest USD strengthGold price (XAU/USD) attracts fresh sellers during the Asian session on Tuesday and drops to the $3,300 neighborhood in the last hour, closer to a one-week low touched the previous day.
Author  FXStreet
1 hour ago
Gold price (XAU/USD) attracts fresh sellers during the Asian session on Tuesday and drops to the $3,300 neighborhood in the last hour, closer to a one-week low touched the previous day.
placeholder
Gold Price Forecast: XAU/USD posts modest gains above $3,300 as traders await US-China trade talksThe Gold price ( XAU/USD) posts modest gains to near $3,325 during the early Asian session on Tuesday, bolstered by a weaker US Dollar (USD). Investors await the ongoing US-China trade talks on Tuesday for fresh catalysts.
Author  FXStreet
5 hours ago
The Gold price ( XAU/USD) posts modest gains to near $3,325 during the early Asian session on Tuesday, bolstered by a weaker US Dollar (USD). Investors await the ongoing US-China trade talks on Tuesday for fresh catalysts.
placeholder
XAU/USD bounces up toward $3,340-$3,350 as the US Dollar softensGold (XAU/USD) is showing moderate gains on Monday, trimming losses following a nearly 2% sell-off during the last two trading days.
Author  FXStreet
21 hours ago
Gold (XAU/USD) is showing moderate gains on Monday, trimming losses following a nearly 2% sell-off during the last two trading days.
placeholder
Gold price shows resilience below $3,300 and rebounds from one-week lowGold price (XAU/USD) is extending last week's retracement slide from a nearly one-month peak – levels just above the $3,400 mark and losing ground for the third consecutive day on Monday.
Author  FXStreet
Yesterday 05: 39
Gold price (XAU/USD) is extending last week's retracement slide from a nearly one-month peak – levels just above the $3,400 mark and losing ground for the third consecutive day on Monday.
placeholder
Gold Price Forecast: XAU/USD holds steady near $3,300 as traders brace for US-China trade talks The Gold price (XAU/USD ) trades on a flat note near $3,310 during the early Asian session on Monday. The rebound in the US Dollar (USD) could weigh on the precious metal. However, uncertainty from US President Donald Trump's tariff policies might help limit the Gold’s losses. 
Author  FXStreet
Yesterday 01: 20
The Gold price (XAU/USD ) trades on a flat note near $3,310 during the early Asian session on Monday. The rebound in the US Dollar (USD) could weigh on the precious metal. However, uncertainty from US President Donald Trump's tariff policies might help limit the Gold’s losses. 
Real-time Quote