Gold has updated new highs awaiting economic data
2023.01.16 03:29
Gold has updated new highs awaiting economic data
By Ray Johnson
Budrigannews.com – As investors locked in profits and exercised some caution ahead of a slew of major economic readings and central bank meetings this week, gold prices held steady around recent highs on Monday.
On a growing number of bets that the U.S. Federal Reserve will act in the upcoming months, lifting some pressure off non-yielding assets, the yellow metal experienced a sharp rally in recent weeks.
Data that showed, which weighed on the and, supported this idea.
As the effects of sharp interest rate hikes through 2022 begin to be felt, fears of a recession in major economies this year also saw renewed demand for gold as a safe haven.
With a flurry of readings coming from the United States, Japan, China, England, and the Eurozone this week, the focus is now on any additional signs of slowing growth in major economies. Interest rate decisions in and are also the subject of attention, with the Bank of Japan in particular in the spotlight following its unexpectedly hawkish tone at its meeting in December.
remained steady at $1,921.50 an ounce at 19:33 ET (00:33 GMT), down 0.1 percent to $1,918.49 an ounce. Nearly at their highest levels since May 2022, both instruments.
Despite this, a U.S. holiday is expected to reduce metals market trading volumes on Monday.
Copper prices, which had soared to seven-month highs last week, retreated slightly on Monday among industrial metals. Bids for the red metal went up a lot in anticipation of a rise in Chinese demand this year, as the country eased most of its strict COVID restrictions.
dropped by 0.3 percent to $4.206 per pound, but have risen by more than 10 percent so far this year.
Copper prices are anticipated to benefit from supply disruptions in major Latin American producers in addition to positive demand trends in China, the world’s largest consumer.
