Gold prices are cut with CPI data in mind; copper boosted by China’s stimulus By Investing.com

Investing.com– Gold prices were little moved in Asian trade on Thursday amid continued pressure from a stronger dollar, with the focus on key inflation data ahead for more interest rate cues.

Among industrial metals, copper prices rose, recovering some from recent losses, as top importer China unveiled plans to implement fiscal stimulus measures.

But metals prices were pressured by a strong dollar as traders anticipated a slower pace of interest rate cuts by the Federal Reserve. That notion has driven gold from record highs in the past week.

It was up 0.2 percent at $2,613.15 an ounce, while December expiry was up 0.2 percent at $2,630.20 an ounce by 00:16 ET (04:16 GMT).

Expected CPI data for several rate indices

The focus was squarely on inflation data due on Thursday, which is likely to factor into the Federal Reserve’s interest rate outlook.

The reading is expected to show that core CPI eased slightly, while remaining sticky in September.

Persistent inflation and a strong labor market give the Fed less impetus to cut interest rates sharply. Strong wages data released last week sparked that notion, and traders are now completely discounting expectations for another 50 basis points of Fed cuts in November.

Minutes from the Fed’s September meeting showed that policymakers supported the bank’s 50 basis point cut. But they remained uncommitted to the pace of future rate cuts.

Lower interest rate cuts are bad for gold and other non-yielding assets, as they raise the opportunity cost.

Other precious metals advanced on Thursday but also suffered steep losses. rose 1% to $969.75 an ounce, while rose 0.2% to $30.742 an ounce.

Copper is higher, with focus on stimulus from China

The London Metal Exchange benchmark rose 0.6 percent to $9,749.50 a tonne, while December rose 0.5 percent to $4.4355 a pound. Both contracts fell sharply this week as China’s recent monetary stimulus measures were largely frowned upon.

But Beijing outlined plans to implement fiscal stimulus measures, with China’s finance ministry due to hold a briefing on Saturday to provide more details.

Investors have called for targeted fiscal measures to boost growth in the world’s biggest copper importer. China is facing rampant deflation and a prolonged housing market crash.