May 14 2024: Gold prices inched higher in Asian trading on Tuesday, recovering slightly from recent losses as investors awaited upcoming U.S. inflation data for further insights into interest rate trends.
Spot gold gained 0.3% to $2,343.60 an ounce, while gold futures expiring in June rose by the same percentage to $2,349.05 an ounce by 00:22 ET (04:22 GMT).
Investors were eyeing the U.S. producer price index (PPI) data due later on Tuesday and the consumer price index (CPI) reading scheduled for Wednesday. These data points are expected to influence expectations regarding U.S. interest rates, particularly after heightened inflation readings in the first quarter tempered rate cut expectations.
Despite concerns about high-for-longer rates favoring the dollar over gold, the yellow metal found support from increased safe haven demand amid geopolitical tensions in the Middle East. However, easing tensions, especially between Iran and Israel, could lessen gold’s safe haven appeal in the face of interest rate pressures.
Other precious metals also saw gains, with platinum futures rising 0.1% to $1,011.05 an ounce and silver futures climbing 0.9% to $28.688 an ounce.
In the industrial metals sector, copper prices surged to two-month highs driven by optimism surrounding China’s massive bond issuance aimed at boosting infrastructure spending and economic recovery. Three-month copper futures on the London Metal Exchange rose 0.2% to $10,227.0 a ton, and one-month copper futures increased 0.5% to $4.7940 a pound, both reaching their highest levels since April 2022.
