Gold prices steady, CPI data expected for more rate indices by Investing.com

Investing.com– Gold prices steadied in Asian trade on Monday, remaining near record highs, as traders awaited more clues on U.S. interest rates from key inflation data due later in the week.

The yellow metal fluctuated last week amid increased volatility in the broader financial markets, although it ended the week slightly higher. The yellow metal also benefited from safe haven demand amid concerns about a bigger war in the Middle East and as Ukraine launched an offensive against Russia.

It was up 0.1 percent at $2,433.62 an ounce, while December expiry settled at $2,472.20 an ounce by 01:03 ET (05:03 GMT).

Gold is set with CPI data on tap

Spot gold was also less than $50 away from a record high. But further gains in the yellow metal were hampered by anticipation of inflation data due on Wednesday.

The reading is expected to show that inflation eased slightly in July, giving the Federal Reserve more confidence to start cutting interest rates.

Traders are split on a 25 or 50 basis point discount by the central bank in September.

Lower interest rates bode well for gold, as they reduce the opportunity cost of investing in the yellow metal.

Other precious metals were limited on Monday. rose 0.2% to $931.40 an ounce, while settling at $27.595 an ounce.

Copper margins are higher, but losses

Among industrial metals, copper prices rose slightly on Monday but have posted steep losses in recent weeks amid sour sentiment towards top importer China.

Concerns about a broader economic slowdown also weighed on the red metal, with slowing economic growth bad for copper demand.

The London Metal Exchange benchmark rose 0.2 percent to $8,853.50 a tonne, while on the month it rose 0.2 percent to $3.9912 a pound.

Both contracts fell sharply in the past month amid a series of weak economic readings from China. Of particular concern were the data showing two consecutive months of declining copper imports from China.

More economic readings from China are available this week and data will be available on Thursday.