Gold prices in Asian trading on Wednesday saw an uptick as the dollar retreated following optimistic remarks from Federal Reserve Chair Jerome Powell. Despite this, the precious metal remained within a familiar trading range established throughout June, with market focus heavily influenced by expectations surrounding U.S. interest rates.
Spot gold edged up by 0.1% to reach $2,332.16 per ounce, while August gold futures showed a 0.3% increase, settling at $2,341.25 per ounce by 23:55 ET (03:55 GMT).
Powell’s recent comments on inflation progress provided support for gold, contributing to a decline in the dollar overnight. However, Powell also emphasized the Fed’s cautious stance on rate adjustments, tempering broader gains for gold and other metals.
Market attention now turns to the release of the Fed’s June meeting minutes later on Wednesday, as well as upcoming speeches by Federal Reserve officials. The eagerly anticipated nonfarm payrolls report due on Friday is expected to provide further clarity on the state of the U.S. labor market.
While recent sessions have seen some relief for gold amid speculation of forthcoming rate cuts by the Fed starting in September, persistent concerns over inflation and the robustness of the labor market have restrained significant upward movement. Gold has largely held steady around the low-$2,300 range over the past month.
In parallel movements among precious metals on Wednesday, platinum futures marginally rose to $1,012.05 per ounce, while silver futures surged by 1% to $29.960 per ounce.
Copper Prices Edge Up Amid Dollar Weakness, Economic Cautio
Meanwhile, copper prices also advanced on Wednesday, benefitting from a weaker dollar. However, gains for the industrial metal were tempered by disappointing economic indicators from China, the world’s largest copper consumer.
Benchmark copper futures on the London Metal Exchange increased by 0.4% to $9,708.0 per tonne, while one-month copper futures saw a 0.3% rise to $4.4407 per pound.
The latest private purchasing managers index data from China highlighted slower-than-expected growth in the service sector for June, raising concerns about the pace of economic recovery in the country. This backdrop of economic uncertainty has weighed on copper prices, which faced notable declines throughout June.
Overall, while gold and copper showed resilience in the face of dollar fluctuations and economic signals, market sentiment remains cautious pending further developments in U.S. monetary policy and global economic recovery efforts.
