Investing.com — Gold prices moved into a flat-to-low range in Asian trading on Monday, posting steep losses from last week as fears of high U.S. interest rates mounted ahead of a Federal Reserve meeting and important inflation data this week.
The yellow metal had fallen from near record highs last week after non-farm payrolls data came in much higher than expected on Friday, causing traders to reconsider their expectations for a September rate cut.
rose 0.1% to $2,295.7 per ounce, while August maturity fell 0.6% to $2,312.30 per ounce at 00:44 ET (04:44 GMT).
Gold traders on edge due to Fed meeting, CPI data available
Markets were fully focused on an upcoming , with a rate decision on Wednesday.
It is widely expected that the central bank will keep interest rates stable. But any signals about future policy will be closely watched, especially after recent signs of resilience in US inflation and the labor market.
A slew of Fed officials had warned that the central bank will keep interest rates high for longer in light of persistent inflation and a strong labor market. Strong numbers on Friday confirmed this idea.
Before Wednesday’s Fed decision, key inflation data will also be available this week. Inflation is expected to remain well above the Fed’s annual target of 2% in May.
Gold and other metal prices were hit on Friday by a sharp decline in positioning for a September rate cut. This trend will continue in the coming days.
The yellow metal was also hit by reports that the People’s Bank of China, a major buyer of precious metals, had sharply scaled back its buying activities in May.
Other precious metals rose on Monday, recovering from last week’s fall. rose 0.7% to $977.05 per ounce, while the price rose 0.9% to $29,690 per ounce.
A recovery in the economy, due to the reduced prospect of interest rate cuts, weighed on broader metals prices.
Copper faces steep losses amid interest rate fears and uncertainty in China
Among industrial metals, copper prices have posted steep losses since last week, hit by a mix of Fed fears and as optimism about top importer China cooled.
The benchmark on the London Metal Exchange rose 0.2% to $9,779.50 per tonne, while the index rose 0.6% in one month to $4.4735 per pound.
Both contracts saw sharp declines from May’s record highs as optimism about strong demand was largely offset by fears that high interest rates will hamper global economic activity, reducing demand for copper.
Mixed economic signals from China added to demand concerns. While import data showed copper demand in the country remained strong, other figures presented a mixed picture of the economy.
