Investing.com — Gold prices fell slightly in Asian trading on Tuesday, staying within a tight trading range as anticipation of a slew of signals on U.S. yields kept traders largely away from metals markets.
The yellow metal fell in June as fears of high US interest rates pushed up dollar and government bond yields. Gold also hovered around $2,300 an ounce.
fell 0.2% to $2,326.47 per ounce, while the maturity expiring in August fell 0.1% to $2,335.80 per ounce at 00:29 ET (04:29 GMT).
Gold muted with more price pointers on tap
Gold remained within a range, with much of the focus on a slew of interest rate signals due this week.
will speak at a European Central Bank conference later on Tuesday, although the Fed chairman is unlikely to give new guidance on rates.
But beyond Powell, the Fed’s June meetings are scheduled for Wednesday, after the central bank largely downplayed expectations for rate cuts at the meeting.
The figures are due Friday and are expected to provide more clues to the labor market, which has been largely strong in recent months. The sector is also an important consideration for the Fed when cutting rates.
Gold received little support from a recent rise in expectations for a September rate cut. This shows that traders are pricing in a nearly 60% possibility that the Fed will cut rates by 25 basis points.
High interest rates do not bode well for gold and other precious metals as they increase the opportunity cost of investing in non-yielding assets.
Still, increased buying by central banks, especially in Asia, has kept gold rising strongly so far this year.
Other precious metals fell lower on Tuesday. fell 0.3% to $990.15 per ounce, while the price fell 0.1% to $29.582 per ounce.
Copper continues to sink due to weak sentiment in China
Among industrial metals, copper prices fell further on Tuesday, as sentiment towards major importer China remained largely negative. Concerns about a slowdown in global economic growth also weighed heavily on prices.
The benchmark on the London Metal Exchange held steady at $9,644.50 a tonne after falling sharply on Monday, as losses continued for a month, falling to $4.4065 a pound.
Mixed Purchasing Managers Index data from China offered several indications of an economic recovery in the country.
The Chinese Communist Party’s Third Plenum – a meeting of senior officials due to take place in July – will now offer more clues about the country.
