Bullion prices have gained nearly 3% since last week as the prospect of smaller U.S. rate hikes offers relief to non-yielding assets. The yellow metal is also seeing increased haven demand due to growing concerns of a global recession this year.
Gold Prices Steady as Investors Await Inflation Data
Gains in gold prices have slowed this week as investors await more cues on the U.S. economy from Federal Reserve speakers and key consumer price index inflation data due on Thursday. Spot gold was flat at $1,877.27 an ounce, and gold futures steadied around $1,881.35 an ounce. The yellow metal appeared largely undeterred by an overnight rise in U.S. Treasury yields.
Copper Prices Steady on Optimism and Supply Disruptions
Among industrial metals, copper prices were flat on Wednesday after a strong run of gains since the beginning of the year. Fears of a global economic slowdown are offset by optimism over a reopening in China, the world’s largest copper importer. Copper futures steadied around $4.0797 a pound and were trading at their highest level over six months. Supply disruptions caused by political violence in Peru also benefit copper prices by tightening markets in the near term, as Peru is the world’s second-largest producer of red metal.