Gold Prices Rise, Eye Record Highs As Inflation Test Approaches Investing.com

Investing.com– Gold prices rose in Asian trade on Thursday, remaining near record highs, as a dollar rally cooled ahead of key inflation data that is likely to weigh on the outlook for interest rate cuts.

Some haven calls also supported bullion prices, especially after some disappointing earnings from darling NVIDIA Corporation (NASDAQ: ) rattled global equity markets.

It was up 0.4 percent at $2,515.76 an ounce, while December expiry was up 0.4 percent at $2,515.91 an ounce by 00:50 ET (0450 GMT).

Gold remains near record highs before inflation, GDP

Spot prices were less than $20 away from a record high of $2,532.05 an ounce hit last week.

Although the yellow metal has struggled to hit new highs since then, it has remained relatively well-priced amid growing belief that the Federal Reserve will cut interest rates in September – a scenario that benefits gold. A weaker one also helped metals markets, although the greenback bounced back sharply from 13-month lows this week.

Refuge demand also factored into gold resistance as tensions in the Middle East showed little sign of abating, while the suspension of oil production in Libya added a new layer of uncertainty.

Safe-haven trading was boosted by a slide in shares of beloved Nvidia, which sent losses to broader equity markets on fears that AI trading is cooling.

But in the following days, he focused directly on several US economic indicators. A revised reading of the data is due later Thursday after a preliminary reading released last month showed the economy remained strong in the second quarter.

Friday’s data will be watched more closely. The print is the Fed’s preferred inflation gauge and is likely to factor in expectations for rate cuts.

Markets are split between a cut of 25 or 50 basis points in September, according to .

The prospect of lower rates weighed on the dollar and supported broader metals markets, although they largely lagged behind gold. rose 0.5% to $942.50 an ounce, while rose 0.8% to $29.858 an ounce.

Copper settles, China sentiment remains weak

Among industrial metals, copper prices rose slightly on Thursday, although a rally seen in recent weeks appeared to have dried up.

The London Metal Exchange benchmark rose 0.3 percent to $9,268.50 a tonne, while on the month it rose 0.1 percent to $4.2190 a pound.

But copper’s recent rally appeared to be running out of steam, especially as sentiment toward top importer China remained constrained by concerns over a renewed trade war with the West.

However, the prospect of improved economic growth amid lower interest rates has fueled some bets that global demand for copper will improve.