In Asian trading on Tuesday, gold prices experienced a slight uptick, maintaining proximity to record highs, buoyed by persistent safe-haven demand amidst ongoing geopolitical uncertainties and anticipation surrounding key economic indicators.
Having surged above $2,350 an ounce on Monday, gold retreated slightly from those levels as the dollar and Treasury yields maintained strength. However, safe-haven demand for the yellow metal remained robust, particularly amidst escalating geopolitical tensions in the Middle East and Russia.
Spot gold edged up by 0.2% to reach $2,344.31 an ounce, while gold futures expiring in June climbed 0.5% to $2,363.0 an ounce by 01:00 ET (05:00 GMT), with spot gold hitting a record high of $2,354.09 an ounce on Monday.
Market attention has now shifted towards the forthcoming consumer price index (CPI) inflation data for March, scheduled for release on Wednesday. Expectations are for the data to reflect sticky U.S. inflation, following a strong nonfarm payrolls report, potentially impacting market expectations regarding future Federal Reserve interest rate adjustments.
Furthermore, the release of the minutes from the Fed‘s March meeting on Wednesday is also eagerly anticipated. Despite the bank signaling dovish sentiments regarding interest rate cuts during the meeting, subsequent statements from Fed officials underscored concerns over persistent inflation, which could delay any potential rate cuts this year.
Geopolitical tensions, notably threats of military action by Iran against Israel and continued clashes between Russia and Ukraine, continued to support safe-haven demand for gold.
In addition to gold, other precious metals also saw gains, with platinum futures rising 1.4% to $990.35 an ounce and silver futures climbing 0.5% to $27.950 an ounce.
Meanwhile, copper prices experienced a slight decline on Tuesday but remained close to 15-month highs reached last week. Three-month copper futures on the London Metal Exchange fell 0.4% to $9,407.50 a ton, while one-month U.S. copper futures dropped 0.5% to $4.2717 a pound.
Attention in the market this week remained focused on economic signals from China, with inflation and trade data awaited later in the week. Signs of tighter copper supplies, coupled with optimistic purchasing managers index data from China, continued to drive momentum in copper prices.
