Dec 3 2024: Gold prices edged slightly higher in Asian trading on Tuesday but remained near recent lows as anticipation of U.S. interest rate cues kept the dollar strong.
Spot gold rose 0.1% to $2,640.77 an ounce, while February gold futures climbed 0.2% to $2,663.66 an ounce by 23:16 ET (04:16 GMT). The dollar’s strength was bolstered by U.S. President-elect Donald Trump’s tariff threats against BRICS nations and ongoing political uncertainty in France, which pressured the euro.
Focus on Powell Speech and Nonfarm Payrolls Data
Gold prices were weighed down by a firm dollar as investors awaited clarity on U.S. monetary policy. Federal Reserve Chair Jerome Powell’s speech on Wednesday, ahead of the year’s final Fed meeting, is expected to provide insights into potential rate cuts.
While the Fed is widely anticipated to lower rates by 25 basis points, uncertainty remains regarding the long-term rate outlook amid persistent inflation and a resilient labor market. The upcoming November nonfarm payrolls report on Friday is expected to influence this outlook, especially as recent hurricane-related disruptions subside.
Trump’s expected expansionary and protectionist policies could further impact interest rates and inflation, potentially weighing on gold, which loses appeal when rates rise.
Mixed Performance in Precious Metals
Platinum futures declined 0.3% to $948.15 an ounce, while silver futures gained 0.6% to $31.058 an ounce.
Copper Slides Amid China Concerns
Copper prices dipped as trade and economic challenges continued to weigh on China, the world’s largest copper importer. Stricter U.S. controls on chipmaking technology exports to China exacerbated concerns.
Benchmark copper futures on the London Metal Exchange slipped 0.1% to $8,994.0 a ton, while February copper futures fell 0.3% to $4.1282 a pound.
China’s business activity data offered some support to copper prices, reflecting the effects of Beijing’s recent stimulus measures. However, traders are awaiting further clarity from two major political meetings in China scheduled for December. Rising trade tensions between the U.S. and China could further impact China’s economy, potentially curbing copper demand.
