Gold prices in Asian trading remained within a narrow range in the low $2,300s on Tuesday, as the recent resilience of the U.S. dollar and upcoming inflation data kept investors cautious towards the precious metal.
Spot gold declined by 0.4% to $2,325.56 per ounce, while gold futures also fell by 0.3% to $2,337.35 per ounce as of 00:10 ET (04:10 GMT).
Over the past week, gold has hovered around the $2,300 mark amid uncertainties surrounding potential interest rate cuts by the Federal Reserve this year. Although May’s inflation data provided some relief, showing moderate price pressures, unexpectedly robust June Purchasing Managers Index (PMI) figures raised concerns about prolonged economic strength in the U.S., suggesting sustained high interest rates.
The focus for this week remains on the Personal Consumption Expenditures (PCE) price index, scheduled for release on Friday. This key inflation gauge is expected to reveal a slight cooling but still hover above the Federal Reserve’s 2% annual target, influencing market expectations for future monetary policy.
In addition to gold, other precious metals also saw mixed movements within established trading ranges. Platinum futures rose by 0.4% to $1,016.55 per ounce, while silver futures dipped slightly by 0.1% to $29.817 per ounce.
Copper Prices Inch Up Amid China Trade Concerns
Meanwhile, copper prices edged higher on Tuesday, recovering slightly from recent declines even as sentiment towards the industrial metal remained cautious due to ongoing trade tensions involving China.
Benchmark copper futures on the London Metal Exchange gained 0.4% to $9,703.50 per tonne, with one-month copper futures also rising by 0.5% to $4.4413 per pound.
Concerns escalated over potential trade disputes after Beijing signaled possible retaliation against the European Union and the U.S. over steep tariffs imposed on Chinese electric vehicles. These developments have contributed to uncertainty in copper markets, which have seen significant volatility in recent weeks amidst broader economic recovery doubts for the year.
