Investing.com — Gold prices rose slightly in Asian trading on Tuesday, recovering marginally from steep losses in the previous session as the focus remained squarely on upcoming U.S. inflation data for more clues on interest rates.
While the yellow metal saw some strength last week, it remained well below April’s record highs, with traders continuing to favor the dollar on fears of prolonged high interest rates in the US.
rose 0.3% to $2,343.60 per ounce, while the June term rose 0.3% to $2,349.05 per ounce at 00:22 ET (04:22 GMT).
PPI, CPI inflation awaited more interest rate signals
US figures were due later on Tuesday, while the more closely watched figures were due on Wednesday.
Both measures are likely to play a role in the outlook for US interest rates, after overheated inflation data in the first quarter caused markets to largely price out most bets on rate cuts this year.
While this trade signaled more headwinds for gold, the yellow metal benefited from increased demand for safe havens amid increased geopolitical tensions in the Middle East. But some de-escalation, especially between Iran and Israel, left gold vulnerable to interest rate pressure.
High-for-long rates do not bode well for gold as they increase the opportunity cost of investing in the yellow metal.
Other precious metals also advanced on Tuesday. rose 0.1% to $1,011.05 per ounce, while the price rose 0.9% to $28.688 per ounce.
Copper prices hit their highest level in two years as Chinese stimulus cheers offset real estate fears
Among industrial metals, copper prices rose to a two-month high on Tuesday as traders cheered more signals from China about a massive bond issuance worth 1 trillion yuan ($138 billion).
Chinese authorities said they will start issuing bonds this week, which will have maturities of between 20 and 40 years. The issuance is mainly aimed at boosting infrastructure spending and encouraging economic recovery in the country.
This created a more optimistic outlook for copper demand. on the London Metal Exchange rose 0.2% to $10,227.0 per tonne, while it rose 0.5% to $4.7940 per pound. Both contracts were at their highest levels since April 2022.
News of Chinese bond issuance largely offset negative signals in China’s real estate market, as another major developer defaulted on its bond payments.
