gold prices

Gold prices remained stagnant during Asian trade on Thursday, recuperating from significant losses earlier this week as the market awaited further signals regarding the state of the U.S. economy and monetary policies. In contrast, copper prices experienced a rebound from a five-month low due to improved sentiment among investors.

The price of gold plummeted below the $2,000 per ounce mark for the first time in two weeks. This decline was primarily driven by the Federal Reserve’s hawkish signals and reduced concerns of a U.S. debt default, leading traders to shift away from the safe-haven asset.

Attention now shifts to upcoming speeches by Federal Reserve officials, particularly the address by Chair Jerome Powell on Friday. Several officials have indicated that U.S. inflation levels remain uncomfortably high, potentially prompting the central bank to implement further tightening measures. This has created additional pressure on gold prices.

At 20:17 ET (00:17 GMT), spot gold remained unchanged at $1,982.18 per ounce, while gold futures stabilized at $1,985.15 per ounce. However, both instruments experienced a weekly decline of 1.4% and 1.8%, respectively.

After reaching a record high earlier this month, gold saw a wave of profit taking throughout the week.

On the other hand, copper prices steadied on Thursday after a notable recovery from the prior session’s five-month low. The red metal had faced renewed selling pressure due to disappointing economic data from China and increased concerns of a U.S. recession this year.

Copper futures maintained stability at $3.7485 per pound following a surge of over 2% on Wednesday.

Market sentiment improved as the Biden administration provided positive indications about raising the U.S. debt ceiling, suggesting that an agreement with Republican lawmakers could be reached this week.

The potential risk of a U.S. debt default had caused anxiety among investors, and it had prompted a shift of funds into gold earlier this month. Treasury Secretary Janet Yellen had warned about the June 1 deadline for raising the U.S. debt ceiling.

Throughout the week, the dollar gained strength, reaching a six-week high. This upward momentum exerted pressure on metal prices as Federal Reserve officials expressed a hawkish stance on interest rates.

Other precious metals, such as platinum and silver futures, remained steady on Thursday, trading within a range of minimal upward movement.


Please continue to read new articles here about merchandise assessed by Waytrade.


Please enter your comment!
Please enter your name here