Investing.com — Gold prices fell slightly in Asian trading on Friday, remaining largely within range as traders continued to favor the dollar ahead of key inflation data that is likely to play a role in interest rates.
The yellow metal recovered some ground on Thursday after falling below $2,300 an ounce earlier this week. But it remained stuck within a tight trading range around that level.
fell 0.3% to $2,320.39 per ounce, while the August term fell 0.3% to $2,330.85 per ounce. Spot prices also fell in June, although some gains were expected in the second quarter.
Gold is bordering ahead on PCE inflation data
The yellow metal remained in a tight trading range for most of June amid growing uncertainty over the path of US interest rates. While some data showed the U.S. economy was cooling, Federal Reserve officials warned that persistent inflation would likely delay plans to cut interest rates.
That is why the focus on Friday was entirely on data. This reading is the Fed’s favorite inflation gauge and is expected to show inflation remaining well above the central bank’s annual target of 2%.
High interest rates do not bode well for metals markets as they increase the opportunity cost of investing in non-performing assets.
Other precious metals also remained within the range on Friday, but continued to rise somewhat during the second quarter.
rose 0.6% to $1,010.05 per ounce, while the price rose 0.2% to $29.328 per ounce.
Expectations of interest rate cuts led to some gains in the metals markets during the second quarter. But traders scaled back much of these bets through June, forcing most metals to give up quarterly gains.
Copper nurses lose in June, Chinese PMIs waited
Among industrial metals, copper prices rose on Friday and were expected to end negative in June as sentiment on top importer China worsened.
The benchmark on the London Metal Exchange rose 0.6% to $9,576.50 per tonne, while the index rose 0.8% in one month to $4.3695 per pound. But both contracts fell between 4% and 5.5% in June.
Losses in the copper sector were mainly driven by growing doubts about strong global demand as economic conditions in major countries deteriorated. Top importer China also became a source of concern in light of a possible trade war with the West.
The focus was now on upcoming figures from China, which will be released this weekend.
