Gold prices remained stable during Thursday’s Asian trading session, staying close to record highs as market attention shifted to an upcoming speech by Federal Reserve Chair Jerome Powell. Key U.S. economic indicators are also anticipated, adding to market speculation.
In the industrial metals sector, copper prices stabilized following a recent surge to two-month highs, as enthusiasm for further stimulus measures from top importer China began to wane.
The metal markets faced some pressure from a rebound in the U.S. dollar, which rose from over one-year lows amid ongoing speculation regarding the Federal Reserve’s next moves following last week’s 50 basis point rate cut.
As of 00:18 ET (04:18 GMT), spot gold was up 0.2% at $2,661.78 per ounce, while December gold futures steadied at $2,685.00 an ounce. Spot gold prices briefly touched a record high of $2,670.52 on Wednesday.
Focus on Powell’s Speech and Economic Data
Gold prices hovered near their recent peaks with all eyes on Powell’s address later in the day. His speech follows comments from several Fed officials this week, who expressed support for the recent significant rate cut but offered mixed signals on future rate reductions.
Additional Fed officials are also scheduled to speak in the coming days, which may influence market sentiment. The recent 50 basis point cut by the Fed marks the onset of an easing cycle, with Citi analysts projecting a total reduction of 125 basis points by year-end. However, the Fed has indicated that its approach to future cuts will be largely data-driven.
In the meantime, revised second-quarter gross domestic product (GDP) data is expected later on Thursday, along with weekly jobless claims figures. Additionally, the PCE price index, the Fed’s preferred measure of inflation, will be released on Friday.
Other Precious Metals Experience Gains
On Thursday, other precious metals also showed positive movement. Platinum futures increased by 0.6% to $997.85 per ounce, while silver futures rose 0.5% to $32.188 per ounce.
Copper Prices Stabilize Amid Cooling Sentiment from China
In the industrial metals market, copper prices steadied after a recent rally to two-month highs driven by optimism surrounding additional stimulus from China. Benchmark copper futures on the London Metal Exchange dipped 0.1% to $9,800.50 per ton, while one-month copper futures stabilized at $4.48553 per pound.
Both copper contracts experienced a sharp rise following China’s announcement of more stimulus measures this week, including a 50 basis point reduction in bank reserve requirements and cuts to mortgage rates. However, analysts suggest that Beijing needs to implement further measures to adequately support growth, particularly on the fiscal side.
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