Gold Prices Hold Near Record Highs With Powell, Rate Indices In Focus By Investing.com

Investing.com– Gold prices steadied in Asian trade on Thursday, hovering near record highs as attention turned to Federal Reserve Chairman Jerome Powell’s next address as key U.S. economic readings loomed them too.

Among industrial metals, copper prices steadied after a recent rise to two-month highs as sentiment over more stimulus from top importer China cooled.

Metals markets were pressured by an overnight rally in the currency, while the greenback rose from more than a year lows amid lingering speculation over how the Fed will cut rates further after a 50 basis point cut last week.

It was up 0.2% at $2,661.78 an ounce, while December expiry settled at $2,685.0 an ounce by 00:18 ET (04:18 GMT). Spot prices briefly hit a record high of $2,670.52 on Wednesday.

Gold settles with Powell, econ. data to touch

The yellow metal remained perched near recent highs, heading straight for an expiration later in the day.

Powell’s speech comes after several Fed officials said this week they supported the central bank’s huge rate cut last week. But they gave mixed signals about how the bank plans to cut rates further.

Other Fed officials are expected to speak in the coming days.

The central bank’s 50 basis point cut marks the start of an easing cycle that Citi analysts expect will cut rates by a total of 125 basis points by the end of the year. But the Fed signaled a largely data-driven approach to further easing.

To that end, a revised reading of second-quarter data is due later Thursday, as well as weekly data. data – the Fed’s preferred gauge of inflation – is due on Friday.

Other precious metals rose on Thursday. rose 0.6% to $997.85 an ounce, while rose 0.5% to $32.188 an ounce.

Copper prices hold as sentiment in China cools

Among industrial metals, copper prices steadied after hitting two-month highs on optimism over more stimulus from top importer China.

The London Metal Exchange benchmark fell 0.1 percent to $9,800.50 a tonne, while it was flat at $4.48553 a pound for the month.

Both contracts rose sharply after China rolled out several stimulus measures this week, including a 50bp cut in bank reserve requirements as well as a cut in mortgage rates.

But analysts said Beijing needed to do more to support growth, particularly on the fiscal front.