Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold treads water ahead of more Fed cues, copper up from 5-month low

Published 18/05/2023, 01:44
Updated 18/05/2023, 01:44
© Reuters

© Reuters

Investing.com -- Gold prices moved little in Asian trade on Thursday, reeling from steep losses this week as markets awaited more cues on the U.S. economy and monetary policy, while copper prices bounced back from a five-month low on some improving sentiment.

The yellow metal tumbled below the $2,000 an ounce level for the first time in two weeks as hawkish signals from the Federal Reserve and easing fears of a U.S. debt default saw traders pivot out of the safe haven.

Focus now remains on more upcoming addresses by Fed officials over the next two days, most importantly Chair Jerome Powell on Friday. A slew of officials signaled that U.S. inflation still remained too high, which could attract more policy tightening measures by the central bank - pointing to more pressure on gold.

Spot gold was flat at $1.982.18 an ounce, while gold futures steadied at $1,985.15 an ounce by 20:17 ET (00:17 GMT). Both instruments were trading down 1.4% and 1.8%, respectively, for the week.

The yellow metal saw a measure of profit taking this week after racing to a record high earlier this month.

Meanwhile, copper prices steadied on Thursday after bouncing back sharply from a five-month low in the prior session. The red metal was hit with a renewed wave of selling on weaker-than-expected economic data from China, as well as increased fears of a U.S. recession this year.

Copper futures were flat at $3.7485 a pound after rallying over 2% on Wednesday.

Market sentiment improved after the Biden administration offered positive cues on raising the U.S. debt ceiling, stating that a deal with Republican lawmakers could be reached by this week.

Concerns over a potential U.S. debt default were a key source of anxiety for markets as U.S. lawmakers sparred over reaching an agreement, and had driven flows into gold earlier this month. Treasury Secretary Janet Yellen warned of a June 1 deadline for raising the U.S. debt ceiling.

The dollar advanced to an over six-week high this week, pressuring metal prices this week as Fed officials offered a hawkish outlook on interest rates.

Other precious metals were steady on Thursday, with platinum and silver futures trading in a flat-to-slightly-higher range.

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.