Investing.com — Gold prices stabilized in Asian trading Thursday, holding near record highs as focus shifted to an upcoming speech from Fed Chairman Jerome Powell, while key U.S. economic data also emerged.
Among industrial metals, copper prices stabilized after a recent rally to a two-month high, while sentiment on more stimulus measures in top importer China cooled.
Metals markets were pressured by an overnight recovery in the United States as the dollar rose from more than a year’s low amid continued speculation about how the Fed will cut rates further after a 50 basis point cut last week .
rose 0.2% to $2,661.78 per ounce, while the December maturity was flat at $2,685.0 per ounce at 00:18 ET (04:18 GMT). Spot prices briefly reached a record high of $2,670.52 on Wednesday.
Golden positions with Powell, econ. data on tap
The yellow metal lingered near recent highs, with focus shifting straight to a point later in the day.
Powell’s speech comes after several Fed officials said this week that they supported the central bank’s excessive rate cut last week. But they offered mixed signals about how the bank plans to further cut rates.
Other Fed officials will also speak in the coming days.
The central bank’s 50 basis point cut marks the start of an easing cycle that Citi analysts expect will see rates cut by a total of 125 basis points by the end of the year. But the Fed showed a largely data-driven approach to further easing.
To that end, a revised reading of the second quarter data, as well as the weekly data, is expected later on Thursday. The numbers – the Fed’s favorite inflation gauge – will be released on Friday.
Other precious metals rose on Thursday. rose 0.6% to $997.85 per ounce, while the price rose 0.5% to $32.188 per ounce.
The copper price remains stable while sentiment in China cools
Among industrial metals, copper prices remained stable after rallying to a two-month high on optimism about more stimulus measures from top importer China.
The benchmark on the London Metal Exchange fell 0.1% to $9,800.50 per tonne, while the index was flat in one month at $4.48553 per pound.
Both contracts rose sharply after China implemented more stimulus measures this week, including a 50 basis point cut in bank reserve requirements and a cut in mortgage rates.
But analysts argued that Beijing needed to do more to support growth, especially on the budget front.
