Gold Prices Remain Steady Near Record Highs as Powell and Rate Cues Come Into Focus

Gold prices held steady in Asian trade on Thursday, remaining close to record levels as attention shifted to an upcoming speech by Federal Reserve Chair Jerome Powell, alongside important U.S. economic data on the horizon.

In the industrial metals sector, copper prices stabilized after a recent surge that brought them to two-month highs, driven by waning sentiments about additional stimulus measures in China, the top importer.

Metal markets faced pressure from a rebound in the dollar, which rose from more than one-year lows amid ongoing speculation regarding the Federal Reserve’s approach to further rate reductions after a 50 basis point cut last week.

Spot gold increased by 0.2% to $2,661.78 per ounce, while December gold futures remained steady at $2,685.00 per ounce. Spot prices had briefly reached a record high of $2,670.52 on Wednesday.

### Gold Remains Steady with Powell Speech and Economic Data Ahead

Gold continued to hover near recent highs, with all eyes on Powell’s address scheduled for later in the day. His speech follows statements from several Federal Reserve officials who have expressed support for last week’s significant rate cut. However, there are mixed signals regarding the Fed’s plans for future rate reductions.

Additional Fed officials are also expected to speak in the coming days. The recent cut marks the start of an easing cycle, with analysts anticipating a total reduction of 125 basis points by the end of the year. Still, the Fed indicated that any further easing will be largely data-driven.

In line with this, a revised reading of second-quarter gross domestic product figures is to be released later on Thursday, along with weekly jobless claims data. The PCE price index report, which is the Fed’s preferred inflation measure, is set for release on Friday.

Other precious metals made gains on Thursday, with platinum futures rising 0.6% to $997.85 per ounce, and silver futures increasing by 0.5% to $32.188 per ounce.

### Copper Prices Stabilize as China Sentiment Cools

In the industrial metals market, copper prices leveled off after climbing to two-month highs driven by optimism regarding increased stimulus measures from China.

Benchmark copper futures on the London Metal Exchange dipped 0.1% to $9,800.50 per ton, while one-month copper futures remained stable at $4.48553 per pound. Both contracts had surged sharply following China’s announcement of additional stimulus measures earlier in the week, which included a 50 basis point reduction in bank reserve requirements and cuts to mortgage rates.

However, analysts suggest that Beijing will need to implement further measures to bolster growth, particularly on the fiscal side.