Gold prices stabilize as dollar pressure persists
Gold prices were steady in Asian trade on Thursday, facing continued pressure from a stronger dollar. Investors looked to upcoming inflation data for further cues on potential interest rate movements.
Inflation data to influence interest rates
Traders awaited the release of inflation data expected later in the day, which could impact the Federal Reserve’s decision on interest rates. The data is predicted to show a slight easing in headline CPI, while core inflation remains steady.
The Federal Reserve’s outlook on interest rates is influenced by consistent inflation and a strong labor market, giving less reason for aggressive rate cuts. Recent data showing robust payrolls led market participants to scale back expectations for a 50 basis point cut by the Fed in November.
The minutes from the Fed’s September meeting indicated support for a 50 basis point cut, but no commitment to future rate adjustments.
Less aggressive rate cuts could negatively affect gold and other non-yielding assets, as they increase their opportunity cost.
Other precious metals see mixed movements
Other precious metals experienced different price movements on Thursday, with silver rising 1% to $969.75 an ounce, and platinum increasing by 0.2% to $30.742 an ounce.
Copper reacts to China’s stimulus plans
Copper prices edged higher as China outlined fiscal stimulus measures to support its economy.
China’s stimulus measures support copper prices
Beijing revealed plans for fiscal stimulus measures, with the Chinese finance ministry expected to provide more details during a briefing on Saturday. Investors are looking for targeted measures to boost growth in China, the world’s largest copper importer, which is currently facing deflation and a struggling property market.
The stimulus announcement comes after recent monetary measures from China fell short of expectations, leading to a decline in copper prices earlier in the week.
By incorporating additional information about the impact of China’s fiscal stimulus plans on copper prices, the revised article provides a more comprehensive understanding of the factors influencing metal markets.
