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Home Gold Prices Gold Prices Edge Up Ahead of Fed Meeting, Copper Dips on China Demand Concerns (July 30)

Gold Prices Edge Up Ahead of Fed Meeting, Copper Dips on China Demand Concerns (July 30)

by anna

Gold prices experienced a slight increase on Tuesday, stabilizing after a significant drop in the previous session. Anticipation of the upcoming Federal Reserve meeting and potential interest rate signals kept traders leaning towards the dollar.

Among industrial metals, copper prices continued to decline due to ongoing concerns about slowing demand from China. Additionally, the prospect of increased production from a joint venture between BHP and Lundin Mining to acquire Filo Corp and expand South American copper projects further pressured copper prices.

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Gold Steadies with Fed Meeting in Focus

Gold faced pressure from an overnight rise in the dollar, driven by long positioning ahead of the Federal Reserve’s rate decision on Wednesday. Spot gold inched up 0.1% to $2,387.98 an ounce, while gold futures for December delivery rose 0.2% to $2,431.35 an ounce by 00:25 ET (04:25 GMT).

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The yellow metal stabilized after recent volatility, having briefly reached record highs earlier in the month due to safe haven demand. However, attention shifted to U.S. interest rates, which affected gold’s trajectory. While lower rates typically benefit precious metals, any indications to the contrary could pose risks.

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This cautious stance kept traders favoring the dollar as the Fed began its two-day meeting on Tuesday. The central bank is expected to maintain current rates, but any hints on future rate cuts will be scrutinized. Markets are largely anticipating a 25 basis point cut in September, though the outlook for further cuts remains uncertain.

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Other precious metals also saw gains but were recovering from recent steep losses. Platinum futures rose 0.3% to $962.55 an ounce, and silver futures climbed 0.7% to $28.055 an ounce.

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