Investing.com — Gold prices fell Tuesday, pressured by rising Treasury yields and a stronger dollar on the day ahead of new inflation data.
fell 0.8% to $2,599.56 per ounce, while December maturity rose 0.4% to $2,606.10 per ounce at 3:43 PM ET (2043 GMT).
Gold under pressure due to higher interest rates on government bonds, dollar
These rose to a four-month high this week, while government bond yields also rose ahead of US inflation figures, expected to show inflation remained stubborn in October. The outcome will also likely play a role in expectations for interest rates.
In addition to the inflation numbers, some Fed speakers have also floated the idea of a rate pause if inflation surprises on the upside between now and the December meeting.
“If inflation surprises on the upside before December, that could give us pause [on rate cuts]Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said Tuesday.
Traders were pricing in a 62.1% chance of a further 25 basis point cut in December, and a 38% chance of being unchanged, it showed.
Other precious metals were mixed Tuesday, but also fueled recent losses from the Trump trade. fell 1.6% to $954.45 per ounce, while it rose 0.8% to $30.863 per ounce.
Copper is sinking, China’s stimulus measures are disappointing
Among industrial metals, copper prices fell on Tuesday, extending recent losses after more fiscal measures in top importer China largely disappointed markets.
The benchmark on the London Metal Exchange fell 1.7% to $9,148.00 a tonne, while December fell 2% to $4.1455 a pound.
China’s National People’s Congress has approved 10 trillion yuan ($1.4 trillion) in new debt measures to support local governments. But traders took issue with a lack of targeted action on personal consumption and real estate markets, especially in light of higher trade tariffs under the Trump presidency.
Still, JPMorgan analysts said China is likely to unveil more targeted fiscal measures in coming months, and Beijing is likely trying to assess the impact of a Trump presidency.
