Gold prices remained in a narrow range on Monday as investors expected further big economic clues from the United States this week, while copper prices were restrained ahead of key economic data from major importer China. The yellow metal had closed flat the previous week after the Federal Reserve raised interest rates as predicted and stated …
Gold prices remained in a narrow range on Monday as investors expected further big economic clues from the United States this week, while copper prices were restrained ahead of key economic data from major importer China.
The yellow metal had closed flat the previous week after the Federal Reserve raised interest rates as predicted and stated that it will continue to rise rates at least once more this year.
Markets are betting on a slowdown in the Fed’s rate hiking cycle this year, which will favor gold. This was also demonstrated by a significant difference between gold futures and the market price.
Gold futures for December delivery slipped 0.2% to $1,996.55 an ounce on Monday, while spot gold fell marginally to $1,958.41.
As a result, non-farm payrolls in the United States are the focus this week.
Minneapolis Fed President Neel Kashkari indicated on Sunday that future rate hikes will be primarily data-dependent, and that the labor market will soften this year.
Any prospective pauses in the Fed’s rate hiking cycle augur well for gold, as rising interest rates raise the opportunity cost of storing metal. However, solid U.S. economic figures last week knocked on gold, raising concerns that the Fed will have ample room to continue raising rates.
Copper, on the other hand, has been subdued ahead of China PMIs.
Copper prices advanced modestly ahead of important Chinese business activity data.
Copper futures remained virtually unchanged at around $3.9358 per pound.
The primary attention was on Chinese Purchasing Managers Index (PMI) data, which was released on July 31 (Monday), for more insight into the world’s top copper importer. The findings are expected to show that activity continued to fall in July, despite the country’s shaky economic recovery.
However, the Chinese government is anticipated to announce additional stimulus measures on Monday, which might push copper prices higher following a week of significant gains.
Risk Disclaimer
Please note that this articles does not offer any instructions or suggestions regarding investment decisions. Therefore, it is essential that you carefully evaluate your financial situation and conduct thorough analysis, or seek advice from a qualified professional, before making any investment decisions.
