In the realm of global commodities, gold maintained a steady stance during Asian trade on Wednesday. The spotlight remained fixated on forthcoming signals concerning U.S. inflation and interest rates, prompting cautious sentiment among traders towards metal markets. Simultaneously, copper prices also navigated a narrow range, influenced by tempered optimism surrounding Chinese stimulus endeavors and a wait-and-see approach for further economic indicators from the leading copper consumer.
Spot gold experienced a marginal decline of 0.1%, settling at $2,358.93 per ounce, while gold futures showed a slight uptick of 0.1%, reaching $2,359.80 per ounce, as they approached expiration later in the week. Despite a strengthening dollar and Treasury yields in overnight trading, gold prices remained resilient.
Even though gold prices steadied, they lingered approximately $100 below the peak levels achieved the previous week. The prevailing focus in metal markets honed in on the trajectory of U.S. interest rates, particularly amidst a series of hawkish signals emanating from the Federal Reserve, which gradually eroded expectations for a September rate cut. Minneapolis Fed President Neel Kashkari’s cautionary remarks underscored the potential for further rate hikes to address persistent inflationary pressures, signaling a less favorable environment for metal markets.
The recent outperformance of platinum and silver, in contrast to gold, underscored their heightened exposure to industrial sectors, fueling a speculative fervor that propelled industrial metals. Platinum futures dipped 0.2% to $1,069.00 per ounce, while silver futures edged up 0.5% to $32.312 per ounce.
Copper prices exhibited a similar trend, with benchmark copper futures on the London Metal Exchange climbing 0.6% to $10,566.50 per tonne, while one-month copper futures recorded a marginal decline of 0.1% to $4.8715 per pound. Despite these fluctuations, both contracts remained below recent peak levels as the speculative surge in industrial metals waned.
China’s announcement of additional supportive measures for the property sector failed to invigorate market sentiment significantly, as traders awaited clarity on the execution and funding mechanisms for the proposed stimulus initiatives. Attention also turned towards forthcoming purchasing managers index data from China, slated for release on Friday, which is anticipated to offer further insights into the economic landscape of the world’s largest copper importer.
