Commodities and Futures News

Gold prices steady above $2,400 as soft CPI data fuels rate cut bets

2024.07.12 00:43

Gold prices steady above $2,400 as soft CPI data fuels rate cut bets

Investing.com– Gold prices fell slightly in Asian trade on Friday, but were sitting on strong gains from the prior session as softer-than-expected U.S. inflation data ramped up bets on a September interest rate cut.

The yellow metal blew past the closely-watched $2,400 an ounce level on Thursday and was less than $50 away from a record high, as it benefited from a sharp drop in the dollar. Gold was also set for a strong weekly performance.

fell 0.3% to $2,408.52 an ounce, while expiring in August fell 0.3% to $2,413.75 an ounce by 00:06 ET (04:06 GMT). 

Gold heads for weekly gains amid rate cut cheer 

Spot prices were set to add about 0.7% this week, with a bulk of gains coming on Thursday. 

data released on Thursday read a touch lower than expected, driving up hopes that cooling inflation will give the Fed more confidence to begin cutting rates.

The and sank on this notion, benefiting metal markets. Traders were seen pricing in an over 82% chance for a 25 basis point cut in September, up from last week’s chances of about 64%. 

Lower interest rates reduce the opportunity cost of investing in non-yielding assets such as gold, given that high rates make yields on cash or debt much more attractive. 

Other precious metals retreated on Friday, but were also set to benefit from lower rates.

fell 0.4% to $1,015.10 an ounce, while fell 0.7% to $31.457 an ounce. 

Copper dips as China imports shrink 

Among industrial metals, copper prices retreated on Friday as data showed imports to China, the world’s biggest copper importer, shrank in June.

Benchmark on the London Metal Exchange fell 0.3% to $9,761.50 a tonne, while one-month fell 0.7% to $4.4977 a pound. 

China’s imports of unwrought copper and copper products fell 3% year-on-year to 436,000 metric tons in June, government data showed on Friday. 

The reading came as broader Chinese unexpectedly shrank in June, fueling concerns over weak local demand and a sluggish economic recovery in the country. 

China’s surged to a near two-year high, while also grew more than expected. But increased trade tariffs on key Chinese exports, such as electric vehicles, could offset this trend.

Focus is now on the Third Plenum of the Chinese Communist Party for more cues on the economy and stimulus. The meeting is set to take place next week.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 96,353.82 1.69%
ethereum
Ethereum (ETH) $ 3,316.02 2.98%
tether
Tether (USDT) $ 1.00 0.06%
solana
Solana (SOL) $ 246.79 3.90%
bnb
BNB (BNB) $ 649.25 1.70%
xrp
XRP (XRP) $ 1.35 9.87%
dogecoin
Dogecoin (DOGE) $ 0.4129 5.08%
usd-coin
USDC (USDC) $ 1.00 0.27%
cardano
Cardano (ADA) $ 0.978254 8.56%
staked-ether
Lido Staked Ether (STETH) $ 3,316.72 2.97%
tron
TRON (TRX) $ 0.203397 5.37%
avalanche-2
Avalanche (AVAX) $ 39.69 5.67%
the-open-network
Toncoin (TON) $ 5.98 4.61%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 4.61%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,920.25 3.88%
stellar
Stellar (XLM) $ 0.472999 6.32%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 96,007.72 2.11%
polkadot
Polkadot (DOT) $ 8.46 2.30%
chainlink
Chainlink (LINK) $ 16.61 5.57%
bitcoin-cash
Bitcoin Cash (BCH) $ 494.29 3.46%
weth
WETH (WETH) $ 3,316.21 3.19%
sui
Sui (SUI) $ 3.32 4.72%
pepe
Pepe (PEPE) $ 0.00002 6.62%
leo-token
LEO Token (LEO) $ 8.51 1.62%
near
NEAR Protocol (NEAR) $ 6.42 2.16%
litecoin
Litecoin (LTC) $ 93.93 6.75%
aptos
Aptos (APT) $ 11.85 6.49%
uniswap
Uniswap (UNI) $ 10.34 5.25%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,486.35 2.73%
hedera-hashgraph
Hedera (HBAR) $ 0.140274 8.99%
usds
USDS (USDS) $ 1.00 0.28%
internet-computer
Internet Computer (ICP) $ 10.68 7.63%
crypto-com-chain
Cronos (CRO) $ 0.18264 5.28%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.537589 5.54%
ethereum-classic
Ethereum Classic (ETC) $ 27.71 7.03%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.08%
render-token
Render (RENDER) $ 7.43 5.24%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.47 5.91%
kaspa
Kaspa (KAS) $ 0.149397 5.47%
bittensor
Bittensor (TAO) $ 501.52 3.35%
whitebit
WhiteBIT Coin (WBT) $ 24.37 1.44%
dai
Dai (DAI) $ 1.00 0.17%
celestia
Celestia (TIA) $ 7.78 14.64%
arbitrum
Arbitrum (ARB) $ 0.816072 3.35%
bonk
Bonk (BONK) $ 0.000045 8.75%
mantra-dao
MANTRA (OM) $ 3.67 1.41%
filecoin
Filecoin (FIL) $ 5.41 1.82%
cosmos
Cosmos Hub (ATOM) $ 8.27 0.15%
vechain
VeChain (VET) $ 0.039884 8.54%
okb
OKB (OKB) $ 52.31 2.51%