Gold prices dipped slightly in Asian trading on Wednesday, continuing losses from the previous session as traders favored the dollar ahead of critical U.S. inflation data.
The precious metal remained confined within the low $2,300 per ounce range that has dominated much of June. The outlook for gold remains clouded by the prospect of sustained high U.S. interest rates.
Spot gold declined 0.1% to $2,317.02 an ounce, while August gold futures also fell 0.1% to $2,328.40 an ounce by 00:17 ET (04:17 GMT).
Gold Rangebound Ahead of PCE Inflation Data
Gold prices have trended lower this week with limited trading volumes as markets await the Personal Consumption Expenditures (PCE) price index data, due this Friday. The PCE index, the Federal Reserve’s preferred measure of inflation, will be crucial in shaping the central bank’s interest rate outlook.
Recent robust U.S. economic indicators, including strong purchasing managers index data and rising consumer confidence, have fueled concerns that the Fed may have sufficient grounds to maintain high interest rates for an extended period. Several Fed officials have reiterated this view this week.
Additionally, a revised reading of the first-quarter gross domestic product is expected to provide further insights into the U.S. economic landscape.
Other Precious Metals Rise Amid Rate Concerns
Other precious metals saw modest gains on Wednesday, though concerns about prolonged high interest rates tempered their advances. The dollar’s strength, remaining near two-month highs, also pressured metal prices.
Platinum futures rose 0.6% to $1,005.25 an ounce, while silver futures inched up 0.2% to $29.258 an ounce.
Copper Prices Steady Amid China Trade Concerns
In the industrial metals market, copper prices remained stable on Wednesday, nursing steep losses accumulated throughout June due to growing caution over China, the world’s largest copper importer.
Benchmark copper futures on the London Metal Exchange fell 0.1% to $9,561.50 per tonne, while one-month copper futures held steady at $4.3695 per pound.
Sentiment towards copper has been dampened by the potential for a trade war between China and the West. This follows the imposition of steep import tariffs on Chinese electric vehicles by the European Union and the United States, which could present significant headwinds for the EV industry—a major future driver of copper demand.
