Investing.com — Gold prices rose in Asian trading on Thursday, holding near record highs after the dollar’s recovery cooled ahead of key inflation data that is likely to play a role in the outlook for rate cuts.
Safe-haven demand also boosted precious metal prices, especially after disappointing earnings from market darling NVIDIA Corporation (NASDAQ:) roiled global stock markets.
rose 0.4% to $2,515.76 per ounce, while the December expiration rose 0.4% to $2,515.91 per ounce at 00:50 ET (04:50 GMT).
Gold remains near record highs before inflation and GDP
Spot prices were less than $20 from a record high of $2,532.05 an ounce last week.
Although the yellow metal had struggled to reach new highs since then, it still remained relatively well-supplied amid growing belief that the Federal Reserve will cut interest rates in September – a scenario that benefits gold. A softer spell also helped metals markets, although the dollar recovered sharply from a 13-month low this week.
Demand for safe havens also played a role in gold’s resilience as tensions in the Middle East showed little sign of easing, while the suspension of oil production in Libya added a new layer of uncertainty.
Safe-haven trading was boosted by a drop in shares of market darling Nvidia, leading to losses in broader stock markets on fears that artificial intelligence trading was cooling.
But the focus in the coming days was squarely on more US economic signals. A revised reading of the figures will follow later on Thursday, after a preliminary reading last month showed the economy remained strong in the second quarter.
The data will be monitored more closely on Friday. This chart is the Fed’s favorite inflation gauge and will likely play a role in expectations for rate cuts.
Markets are divided between a 25 or 50 basis point cut in September.
The prospect of lower interest rates dented the dollar and boosted broader metals markets, although they largely lagged gold. rose 0.5% to $942.50 per ounce, while the price rose 0.8% to $29.858 per ounce.
Copper remains stable, Chinese sentiment remains weak
Among industrial metals, copper prices rose slightly on Thursday, although the recovery of recent weeks appeared to have dried up.
The benchmark on the London Metal Exchange rose 0.3% to $9,268.50 per tonne, while the benchmark rose 0.1% in one month to $4.2190 per pound.
But copper’s recent rebound appeared to be losing steam, especially as sentiment toward top importer China remained subdued by concerns about a renewed trade war with the West.
However, the prospect of an improvement in economic growth, against the backdrop of lower interest rates, has led to expectations that global copper demand will improve.
