Gold prices edged higher in Asian trading on Friday as the US dollar weakened following soft US GDP data and as markets awaited fresh inflation readings.
Spot gold rose 0.2% to $2,335.86 an ounce, while gold futures for June delivery climbed 0.2% to $2,335.68 an ounce by 1:00 AM ET (05:00 GMT).
Precious metals prices got some relief after the dollar fell tracking softer-than-expected US gross domestic product data. But those gains were capped as a stronger HDP price index saw traders further price in expectations of the Federal Reserve cutting interest rates.
Gold is set for a weekly loss as PCE data loom
Spot prices were on track to lose 2% this week, extending a decline from near five-session record highs hit in early April. Prices hit record highs around $2,430 an ounce.
A key pressure point for gold has been the lower risk premium amid Middle East jitters, as war between Iran and Israel has not materialized.
But the biggest source of gold’s losses has been the reduced bets on the Fed cutting rates. The CME Fedwatch tool showed traders only expected the Fed to start cutting rates by September or the fourth quarter.
That put the upcoming PCE index data in focus. The data is the Fed’s preferred gauge of inflation and is likely to be factored into the central bank’s outlook.
Other precious metals were up on Friday but also set for weekly losses.
Platinum futures rose 0.6% to $931.25 an ounce, while silver futures were up 0.9% to $27.60 an ounce.
Copper prices bounce to 2-year highs, BHP-Anglo deal eyed
Among industrial metals, copper prices gained on the weaker dollar and bounced to two-year highs.
London Metal Exchange three-month copper futures rose 0.8% to $9,983.50 a tonne, while one-month copper futures gained 0.7% to $4.5745 a pound.
The focus now turns to the nearly $39 billion bid by top miner BHP Group Ltd (ASX: BHP) for smaller copper miner Anglo American PLC (LON: AAL), which could potentially create the world’s biggest copper miner. However, news reports showed Anglo’s board largely rejected the bid.
Tighter market prospects remained in play after Chinese copper smelters signaled production cuts. Tighter Western sanctions on Russian metal exports have also signaled tighter markets.
Here’s a summary of the precious metals prices:
- Spot gold: $2,335.86 an ounce, up 0.2%
- Gold futures (June): $2,335.68 an ounce, up 0.2%
- Spot silver: $27.60 an ounce, up 0.9%
- Silver futures (March): $27.60 an ounce, up 0.9%
- Spot platinum: $931.25 an ounce, up 0.6%
- Platinum futures (March): $931.25 an ounce, up 0.6%
- Copper (3 months): $9,983.50 a tonne, up 0.8%
- Copper (1 month): $4.5745 a pound, up 0.7%
Important:
- Precious metals prices can fluctuate significantly throughout the day.
- It is important to do your own research before investing in gold or other precious metals.
Sources:
- Investing.com: https://www.investing.com/commodities/gold
- Reuters: https://www.reuters.com/markets/quote/XAU=/
- Kitco: https://www.kitco.com/charts
