Gold prices declined in Asian trading on Wednesday, further retreating from recent record highs as concerns over high U.S. interest rates intensified ahead of new insights from the Federal Reserve.
The downward trend extended to industrial metals, with copper prices also pulling back from their recent peaks. This decline followed a speculative surge in the red metal, which has cooled as traders await more information on physical supply and overall demand.
A stable U.S. dollar exerted additional pressure on metal prices, while the demand for gold as a safe haven diminished due to the absence of escalating geopolitical tensions in the Middle East. This follows the recent death of the Iranian President in a helicopter crash.
Spot gold dropped 0.2% to $2,415.61 per ounce, while gold futures for June delivery fell 0.3% to $2,418.75 per ounce by 00:23 ET (04:23 GMT). Despite the decline, spot prices remain close to their recent high of $2,450.06 per ounce.
Copper Prices Retreat as Speculative Surge Pauses
Benchmark copper futures on the London Metal Exchange fell 0.9% to $10,730.00 per ton on Wednesday, while one-month U.S. copper futures declined 0.8% to $5.0595 per pound. Both contracts have pulled back from the record highs reached earlier in the week.
The speculative surge in copper, driven in part by a short squeeze on the Comex exchange, has now paused as traders assess whether physical copper supplies can meet demand. Cooling optimism over China, the world’s largest copper importer, has also contributed to the pullback in prices as traders await the implementation of Beijing’s recently announced stimulus measures.
