Investing.com– Gold prices remained steady in Asian trade on Thursday, hovering near record highs as market focus shifted towards an upcoming speech by Federal Reserve Chair Jerome Powell, along with key U.S. economic data on the horizon.
Gold Prices and Federal Reserve Outlook
Gold prices steadied at $2,661.78 an ounce, while futures contracts expiring in December held firm at $2,685.0 an ounce. Spot prices briefly touched a record high of $2,670.52 on Wednesday. The yellow metal has been trading close to recent peaks, with investors eagerly awaiting Powell’s address later in the day.
Powell’s speech follows remarks from several Fed officials who backed the central bank’s significant rate cut of 50 basis points last week. However, there is uncertainty surrounding the Fed’s future rate-cutting plans. The 50 bps reduction is seen as the start of an easing cycle, with analysts from Citi expecting rates to be lowered by a total of 125 bps by the end of the year. The Fed’s approach to further easing will be data-driven.
Economic Data and Precious Metals
Revised second-quarter GDP data and weekly jobless claims data are expected to be released later on Thursday, with the Fed’s preferred inflation measure, the PCE price index, scheduled for Friday. In addition to gold, other precious metals saw gains on Thursday, with silver rising by 0.6% to $997.85 an ounce and platinum up 0.5% to $32.188 an ounce.
Insight on Copper Prices and China Stimulus
Copper prices held steady after reaching two-month highs, as optimism over additional stimulus measures from China began to ease. Benchmark copper on the London Metal Exchange fell slightly to $9,800.50 a ton, while one-month copper was stable at $4.48553 a pound. China recently implemented various stimulus initiatives, such as a 50 bps decrease in bank reserve requirements and a reduction in mortgage rates. However, analysts believe that further fiscal support is necessary to sustain economic growth in China.
By examining the interplay between central bank actions, economic data releases, and global market sentiment, investors can gain a better understanding of the factors impacting the prices of both precious and industrial metals.
