Yahoo Finance Gold prices tick lower with Powell, payrolls in focus; copper weak
Investing.com-- Gold prices fell slightly in Asian trade on Tuesday, remaining in a tight trading range as anticipation of a slew of cues on U.S. interest rates kept traders largely averse towards metal markets.
The yellow metal was nursing a fall through June, as fears of high U.S. interest rates pushed up the dollar and Treasury yields. Gold also remained stuck around $2,300 an ounce.
Spot gold fell 0.2% to $2,326.47 an ounce, while gold futures expiring in August fell 0.1% to $2,335.80 an ounce by 00:29 ET (04:29 GMT).
Gold muted with more rate cues on tap
Gold remained rangebound with focus largely on a slew of cues on interest rates due this week.
Federal Reserve Chair Jerome Powell is set to speak at a European Central Bank conference later on Tuesday, although the Fed Chair is unlikely to provide any new cues on interest rates.
But beyond Powell, the minutes of the Fed’s June meeting are due on Wednesday, coming after the central bank largely downplayed expectations for rate cuts during the meeting.
Nonfarm payrolls data is due on Friday, and is set to offer more cues on the labor market, which has been largely running strong in recent months. The sector is also a key consideration for the Fed in cutting rates.
Gold took little support from a recent increase in expectations for a September rate cut. The CME Fedwatch tool shows traders pricing in a nearly 60% possibility the Fed will cut rates by 25 basis points.
High rates bode poorly for gold and other precious metals, given that they increase the opportunity cost of investing in non-yielding assets.
Still, increased central bank buying, especially in Asia, kept gold sitting on strong gains so far in the year.
Other precious metals drifted lower on Tuesday. Platinum futures fell 0.3% to $990.15 an ounce, while silver futures fell 0.1% to $29.582 an ounce.
Copper sinks further amid weak China sentiment
Among industrial metals, copper prices sank further on Tuesday as sentiment towards major importer China remained largely negative. Concerns over a slowdown in global economic growth also weighed heavily on prices.
Benchmark copper futures on the London Metal Exchange steadied at $9,644.50 a tonne, after falling sharply on Monday, while one-month copper futures extended losses, falling to $4.4065 a pound.
Mixed purchasing managers index data from China offered differing cues on an economic recovery in the country.
The Chinese Communist Party’s Third Plenum- a meeting of high-level officials that is set to take place in July- is now set to offer more cues on the country.
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