Investing.com — Gold prices fell in Asian trading on Monday, consolidating some recent gains as traders turned more focused on the dollar ahead of key U.S. inflation data due later in the week.
The yellow metal strengthened a bit last week as some signs of a cooling US economy sparked speculation about possible Federal Reserve rate cuts in 2024.
But gold was still well below April’s record highs and is expected to trade within a range ahead of this week’s inflation data.
fell 0.1% to $2,357.35 per ounce, while the June term fell 0.5% to $2,363.65 per ounce at 23:55 ET (03:55 GMT).
Gold and metals markets are on edge due to inflation figures
Gold and broader metals markets were tense ahead of key US inflation data due this week.
The data for April will be released on Tuesday, while the more closely watched data will be released on Wednesday.
Any sign of continued inflation is likely to further dampen expectations of a US rate cut this year, lifting metal prices and putting pressure on metal prices.
The dollar remained stable after recent volatility. Data on Friday showed US consumer confidence weakened significantly in May, but inflation projections for the coming year remain high.
Broader precious metals prices have also been under pressure ahead of this week’s inflation data, as higher interest rates increase the opportunity cost of investing in metals markets.
was steady at $1,005.05 per ounce, while down 0.8% to $28,288 per ounce.
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Copper prices are rising due to mixed signals from China
Among industrial metals, copper prices rose on Monday to remain near two-year highs amid some optimism about tighter markets. But further gains were halted by mixed signals from top importer China.
on the London Metal Exchange rose 0.3% to $10,080.50 a tonne, while it rose 0.2% to $4.6630 a pound.
Chinese inflation data, released this weekend, showed a rise in inflation. But inflation, which is a key indicator of local factory and business activity, shrank for the 19th month in a row.
But the mixed inflation data was offset by Beijing easing more restrictions on the beleaguered real estate sector, which could support copper demand in the coming months.
