Gold Prices Pressured by Rate Uncertainty, As Fed and Inflation Indicators Loom By Investing.com

Investing.com– Gold prices fell in Asian trade on Wednesday, extending a slide from record highs, amid growing bets that the Federal Reserve will cut interest rates at a slower pace in coming months.

A firm dollar also weighed on broader metals markets as bets on a smaller Fed rate cut sent US Treasury yields higher.

It fell 0.2 percent to $2,615.90 an ounce, while December expiration was down slightly at $2,634.20 an ounce by 00:57 ET (04:57 GMT). Spot prices had hit a record high of $2,685.96 an ounce earlier this month.

Gold eases on Fed, inflation cues on tap

Bullion prices were pressured by uncertainty over US interest rates as a growing number of traders bet the Fed would cut rates by 25 basis points in November.

The Fed’s September meeting will be held later on Wednesday and is expected to provide more information on the central bank’s stance. The Fed cut rates by 50 bps in September and announced the start of an easing cycle.

But strong payrolls data for September raised doubts about how much impetus the Fed had to keep cutting rates. That notion has pushed the dollar higher and weighed on precious metal prices as higher rates dampen their appeal.

Inflation data is due on Thursday and is also expected to factor into the Fed’s decision.

Other precious metals were mixed on Wednesday, but there were also care losses in recent sessions. fell 0.1% to $964.90 an ounce, while rose 0.8% to $30.865 an ounce.

Copper prices post steep losses amid China woes

Among industrial metals, copper prices rose slightly on Wednesday, but have posted steep losses in recent sessions as optimism over more stimulus measures from top importer China dried up.

The London Metal Exchange benchmark rose 0.9 percent to $9,844.0 a tonne, while December rose 0.5 percent to $4.4975 a pound.

Both contracts fell about 2 percent on Tuesday after China’s top economic planner gave little indication of how the government planned to implement recently unveiled stimulus measures.

Investors were also disappointed by China’s lack of fiscal stimulus measures, despite repeated calls for more targeted economic support from the world’s biggest copper importer.