June 26 2024: Gold prices dipped slightly in Asian trade on Wednesday, extending losses from the previous session as traders favored the dollar in anticipation of key U.S. inflation data.
The yellow metal remained within a trading range around the low $2,300 per ounce, a range it has maintained for most of June, as the outlook was clouded by the prospect of high U.S. interest rates.
Spot gold decreased by 0.1% to $2,317.02 an ounce, while gold futures for August delivery also fell by 0.1% to $2,328.40 an ounce by 00:17 ET (04:17 GMT).
Gold Prices Rangebound as PCE Inflation Data Approaches
Gold prices trended lower this week, with trading volumes remaining limited as markets awaited the PCE price index inflation data due this week. This reading, expected on Friday, is the Federal Reserve’s preferred inflation gauge and will likely influence the central bank’s outlook on interest rates.
Recent signs of resilience in the U.S. economy, including strong purchasing managers index data and consumer confidence readings, have raised fears that the Fed may have enough justification to keep rates high for longer. Several Fed officials reiterated this sentiment this week.
A revised reading on first-quarter gross domestic product is also expected to provide more insights into the U.S. economy this week.
Other Precious Metals See Limited Gains
Other precious metals rose on Wednesday, though gains were muted by concerns that prolonged high interest rates would depress their prices in the coming months. The strong dollar, which remained near two-month highs, also weighed on metal prices. Platinum futures rose 0.6% to $1,005.25 an ounce, while silver futures increased by 0.2% to $29.258 an ounce.
Copper Prices Stable Amid China Concerns
Among industrial metals, copper prices remained stable on Wednesday, continuing to nurse significant losses through June amid growing caution over top importer China.
Benchmark copper futures on the London Metal Exchange fell 0.1% to $9,561.50 per tonne, while one-month copper futures held steady at $4.3695 per pound.
The potential for a trade war between China and the West dampened sentiment towards copper, particularly following the European Union and U.S. imposition of steep import tariffs on Chinese electric vehicles. These tariffs present additional challenges for the EV industry, a major source of future copper demand.
