In Asian trade on Wednesday, gold prices saw a modest increase as the dollar softened following optimistic remarks from Federal Reserve Chair Jerome Powell.
Spot gold rose by 0.1% to $2,332.16 per ounce, while August gold futures climbed 0.3% to $2,341.25 per ounce by 23:55 ET (03:55 GMT). Despite these gains, gold remained within a familiar trading range established throughout June, with market focus predominantly on forthcoming cues regarding US interest rates.
The uptick in gold prices was attributed to a decline in the dollar overnight, prompted by Powell’s comments highlighting progress in inflation management. However, Powell also underscored the Fed‘s need for further confidence before considering rate cuts, which tempered gold’s ascent.
Investor sentiment remained cautious awaiting the release of the Fed’s June meeting minutes later in the day, along with upcoming speeches from Fed officials. Of particular interest will be the nonfarm payrolls data scheduled for Friday, expected to provide crucial insights into the US labor market and influence gold’s trajectory.
While recent sessions have seen some optimism that the Fed may initiate rate cuts starting September, concerns persist over inflation and the robustness of the labor market, which have restrained gold from breaking out of the low-$2,300s range it has held for nearly a month.
Other precious metals also saw gains on Wednesday, with platinum futures inching up to $1,012.05 per ounce and silver futures rising 1% to $29.960 per ounce.
In contrast, copper prices saw modest gains amidst a weaker dollar, yet were tempered by disappointing economic data from China. Private PMI data revealed slower-than-expected growth in China’s service sector for June, signaling concerns about the pace of economic recovery in the world’s top copper importer.
