Investing.com– Gold prices moved little on Tuesday as markets awaited more cues on U.S. monetary policy this week, while copper prices steadied near one-month highs before an interest rate cut in major importer China.
Federal Reserve Chair Jerome Powell is expected to on Wednesday, potentially serving up more cues on U.S. monetary policy after the central bank last week.
But gold came under pressure as the Fed also flagged a higher peak interest rate this year, which could herald more hikes from the bank as it moves against sticky inflation.
steadied at $1,951.39 an ounce, while were flat at $1,962.95 an ounce by 20:49 ET (00:49 GMT).
Fed, economic uncertainty keeps gold in holding pattern
Uncertainty over rising interest rates, coupled with mixed signals on a potential recession this year kept gold trading within a tight trading range for the past month.
Prices have moved largely between $1,925 and $2,000 an ounce, with few catalysts allowing for a breakout in either direction.
While the prospect of rising interest rates has kept gains in gold limited, the yellow metal remained supported by some safe haven demand as investors positioned for a potential recession this year.
Other precious metals followed a similar trend as gold, with and both treading water on Tuesday.
Focus this week is also on a slew of Fed speakers for more cues on monetary policy, as well as U.S. business activity data for May.
Copper steadies as China rate cut looms
Copper prices kept to a tight range on Tuesday, hovering just below a recent one-month high as investors awaited more stimulus measures from major importer China.
were flat at $3.8617 a pound.
The People’s Bank of China is expected to cut its key later in the day, after trimming medium-term lending rates last week. The move comes as Beijing struggles to shore up a slowing economic rebound in the country.
Copper had reacted positively to last week’s rate cuts, but could see limited gains this week, given that the loan prime rate cut is likely priced in by markets.
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