Commodities

Gold Prices Edge Up After Weekly Losses; Inflation in Focus

Gold prices experienced a slight increase in Asian trading on Monday, recovering some of the losses from the previous week as traders remained cautious ahead of an important U.S. inflation report set for later this week.

Market activity was muted due to holidays in the UK and the U.S., leading to a lack of significant trades. Additionally, traders were hesitant to make large bets as they awaited further information regarding U.S. interest rates.

Copper prices also saw a rise, bouncing back after a decline from their record highs last week. Copper increased by 0.4% to $2,343.23 per ounce, while futures for June also rose by 0.4% to $2,344.10 per ounce. Spot prices were recovering following a significant drop from peak levels.

The key focus this week is on the personal consumption expenditures (PCE) data, which is the Federal Reserve’s preferred measure of inflation. This report is scheduled for release on Friday and follows comments from Fed officials about persistent inflation, which led traders to largely dismiss the possibility of interest rate cuts from the central bank this year. Many are now anticipating that the Fed will keep rates steady in September, previously thought to be a likely time for a cut.

This shift in expectations has put pressure on gold and other metal prices, with traders leaning toward other investments. The decline in demand for gold as a safe haven has further impacted its value.

Other precious metals also saw gains on Monday, rebounding from last week’s declines. Palladium rose by 1.2% to $1,048.70 per ounce, while platinum increased by 1.7% to $31.023 per ounce.

Copper prices stabilized after last week’s significant drop, rising by 0.3% to $4.7720 per pound. As speculation that had driven prices to record levels in May began to settle, traders are focused on whether the physical copper market remains as tight as initially thought and whether supply can hold steady in the upcoming months.

Marketplace attention is also directed towards China, the world’s largest copper importer, as there is anticipation regarding how the country plans to fund and implement a series of recently announced stimulus measures.

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