Commodities and Futures News

Gold, copper buoyant as dollar falls sharply on Fed pause bets

2023.06.09 00:18


© Reuters.

Investing.com– Gold and broader metal markets steadied on Friday and were set for a second week of gains, as the dollar retreated amid bets that the Federal Reserve will pause its rate hike cycle next week.

The yellow metal marked its best intraday gain in two weeks on Thursday, coming to the upper end of a trading range seen since mid-May as a jump in weekly U.S. ramped up bets on a Fed pause.

The marked its sharpest drop since late-March following the data, while also eased, which in turn benefited metal markets priced in the greenback.

was flat at $1,965.04 an ounce, while rose 0.1% to $1,979.75 an ounce by 20:09 ET (00:09 GMT). Both instruments were up about 0.8% for the week.

Weakness in the labor market, coupled with some easing in inflation could see the Fed pause its rate hike cycle when it . But recent and indicators beat expectations, keeping uncertainty high over how the central bank will act.

show that markets are pricing in a nearly 76% chance the Fed will pause in June, with a 24% chance for a 25 basis hike. 

data is also on tap next week, offering more cues on future interest rate decisions by the Fed.  

Gold’s medium, long-term outlook still uncertain

While the yellow metal is expected to see some support if the Fed pauses next week, its gains are expected to be limited with U.S. interest rates likely staying higher for longer this year. 

Uncertainty over the Fed and the economy has also kept gold within a tight trading range since mid-May, after the yellow metal tumbled below the closely watched $2,000 an ounce level.

Still, worsening economic conditions this year could see increased safe haven demand for gold, especially as a pause in the Fed’s rate hike cycle saps support for the dollar. 

Citi and Commerzbank (ETR:) analysts said on Thursday that a Fed pause is also expected to provide some bullish trends to gold.

Copper heads for second week of gains

Copper prices steadied on Friday, and were set for a second week of gains as they rebounded from six-month lows hit in May. 

were flat at $3.7875 a pound, and were set to add 1.6% this week.

But despite the two-week recovery, the outlook for the red metal remains dour, especially in the face of worsening economic conditions across the globe.

Signs of a slowing economic recovery in China have also greatly stymied sentiment towards copper.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 103,168.64 0.15%
ethereum
Ethereum (ETH) $ 2,479.65 5.95%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.42 2.49%
bnb
BNB (BNB) $ 653.52 2.73%
solana
Solana (SOL) $ 171.68 0.20%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.232806 13.71%
cardano
Cardano (ADA) $ 0.812618 3.31%
tron
TRON (TRX) $ 0.260579 0.62%
staked-ether
Lido Staked Ether (STETH) $ 2,475.27 5.70%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 103,167.64 0.20%
sui
Sui (SUI) $ 3.97 1.68%
chainlink
Chainlink (LINK) $ 16.68 4.04%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,980.01 6.11%
avalanche-2
Avalanche (AVAX) $ 24.43 5.01%
stellar
Stellar (XLM) $ 0.306957 3.57%
shiba-inu
Shiba Inu (SHIB) $ 0.000016 5.67%
hedera-hashgraph
Hedera (HBAR) $ 0.211345 5.29%
the-open-network
Toncoin (TON) $ 3.37 2.61%
hyperliquid
Hyperliquid (HYPE) $ 25.10 0.06%
bitcoin-cash
Bitcoin Cash (BCH) $ 420.19 2.71%
usds
USDS (USDS) $ 1.00 0.00%
leo-token
LEO Token (LEO) $ 8.61 1.52%
litecoin
Litecoin (LTC) $ 103.04 3.89%
polkadot
Polkadot (DOT) $ 5.06 5.68%
weth
WETH (WETH) $ 2,481.26 5.85%
monero
Monero (XMR) $ 322.87 3.86%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,646.20 6.15%
bitget-token
Bitget Token (BGB) $ 4.84 7.88%
pepe
Pepe (PEPE) $ 0.000013 7.47%
pi-network
Pi Network (PI) $ 0.73995 1.85%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.03%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 103,134.63 0.18%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.02%
whitebit
WhiteBIT Coin (WBT) $ 30.20 0.62%
uniswap
Uniswap (UNI) $ 6.87 8.48%
bittensor
Bittensor (TAO) $ 448.03 3.90%
near
NEAR Protocol (NEAR) $ 3.03 4.25%
aptos
Aptos (APT) $ 5.77 4.26%
dai
Dai (DAI) $ 1.00 0.01%
aave
Aave (AAVE) $ 223.91 6.50%
ondo-finance
Ondo (ONDO) $ 1.04 2.18%
okb
OKB (OKB) $ 54.77 2.15%
susds
sUSDS (SUSDS) $ 1.05 0.02%
ethereum-classic
Ethereum Classic (ETC) $ 19.83 3.73%
internet-computer
Internet Computer (ICP) $ 5.48 1.04%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
crypto-com-chain
Cronos (CRO) $ 0.100079 1.38%
official-trump
Official Trump (TRUMP) $ 14.23 2.71%