Investing.com– Gold prices fell slightly in Asian trade on Wednesday as the dollar recovered from 13-month lows, with focus remaining on key upcoming inflation data for more cues on interest rates.
But the yellow metal remained in sight of peaks hit this month, as geopolitical jitters fueled some safe haven demand, while the prospect of lower U.S. interest rates also kept gold well-bid.
fell 0.5% to $2,512.88 an ounce, while expiring in December fell 0.2% to $2,547.60 an ounce by 00:37 ET (04:37 GMT). Spot prices hit a record high of $2,532. 05 an ounce last week.
Gold stalls as dollar recovers; PCE data on tap
The yellow metal was pulled off record highs as the recovered from 13-month lows hit earlier this week.
But gold still retained a bulk of its gains, while the dollar’s recovery was limited amid persistent bets that the Federal Reserve will begin cutting interest rates from September.
Dovish comments from Fed officials furthered this notion in recent sessions, with traders split over a 25 or 50 basis point cut, showed.
data- the Fed’s preferred inflation gauge- is due this Friday and is set to offer more cues on the path of interest rates.
Lower rates bode well for gold, given that they reduce the opportunity cost of investing in non-yielding assets. This notion also favored flows into other precious metals, although they largely lagged gold’s rally over the past month.
fell 0.8% to $959.40 an ounce, while fell 0.5% to $30.280 an ounce.
Copper pulls back as rebound stalls, China concerns grow
Among industrial metals, copper prices fell on Wednesday as a rebound rally in the red metal cooled, with fresh concerns over top importer China further undermining prices.
Benchmark on the London Metal Exchange fell 0.6% to $9,370.50 a ton, while one-month fell 0.7% to $4.2715 a pound.
Copper prices rose sharply over the past month, as they rebounded from multi-month lows hit in July amid persistent concerns over slowing demand.
These concerns came back into play this week after Canada imposed steep trade tariffs on China’s electric vehicle sector, drawing ire from Beijing.
Traders feared a renewed trade war between China and the West, which could further dent a slowing economic recovery in China and hurt its appetite for copper.
The EV sector is also a key source of copper demand.
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