Gold prices dip below $2,700 with CPI, Fed cues in focus

Investing.com– Gold prices fell in Asian trade on Monday (NASDAQ:MNDY), extending losses from last week as risk appetite remained mostly upbeat following Donald Trump’s victory in the 2024 presidential election.

The yellow metal was also pressured by strength in the dollar, as the greenback steadied before more cues on U.S. inflation and the Federal Reserve this week. An outlook for higher rates in the long term, under a Trump presidency, also weighed on bullion prices.

Spot gold fell 0.5% to $2,670.69 an ounce, while gold futures expiring in December fell 0.% to $2,677.50 an ounce by 23:35 ET (04:35 GMT). 

Gold nurses tumble from record highs 

Gold prices were nursing a tumble from record highs over the past week, with a bulk of losses coming after Trump’s election victory. 

His victory cleared a main point of uncertainty for markets, which had also been a major source of safe haven demand for gold. 

Trump is expected to enact more expansionary policies in his second term, heralding a potential increase in inflation and keeping interest rates relatively high in the long term. 

This notion saw gold take little relief from the Fed cutting interest rates by 25 basis points last week, and flagging a cautious approach to further easing. 

Focus this week is on U.S. consumer price index inflation, set to offer more cues on whether inflation is cooling in line with the Fed’s expectations.

A slew of Fed officials are also set to speak in the week, offering up more cues on monetary policy. 

Gold saw little safe haven demand even as tensions between Ukraine and Russia appeared to have ramped up after Ukraine launched a major drone attack on Moscow. 

Other precious metals were mixed on Monday. Platinum futures rose 0.4% to $983.05 an ounce, while silver futures fell 0.5% to $31.293 an ounce. 

Copper steadies as China stimulus underwhelms 

Among industrial metals, copper prices nursed steep losses as new fiscal measures from China, the world’s biggest copper importer, largely underwhelmed. 

Benchmark copper futures on the London Metal Exchange rose 0.1% to $9,450.0 a ton, while December copper futures fell 0.1% to $4.3037 a pound. 

China’s National People’s Congress approved about 10 trillion yuan ($1.4 trillion) in new debt measures, aimed at aiding local governments.

But the move disappointed investors hoping for more targeted fiscal stimulus, especially as data over the weekend showed Chinese deflation worsened in October. 

Analysts at ANZ said Beijing was likely holding off on more fiscal measures to see just how U.S. policy towards the country will change under a Trump presidency. 

Trump has vowed to impose steep trade tariffs against China.

This post is originally published on INVESTING.

  • Related Posts

    Oil prices ease on fears of higher output, sluggish demand

    By Katya Golubkova and Trixie Yap (Reuters) -Oil prices slipped in early trade on Thursday, reversing most of the previous session’s gains, weighed down by worries of higher global production…

    Asia FX weak as dollar surges to 1-year high on sticky inflation; Powell awaited

    Investing.com– Most Asian currencies weakened on Thursday, while the dollar rose to a one-year high on data showing continued stickiness in U.S. inflation, with focus now turning to an upcoming…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Oil prices ease on fears of higher output, sluggish demand

    • November 14, 2024
    Oil prices ease on fears of higher output, sluggish demand

    Asia FX weak as dollar surges to 1-year high on sticky inflation; Powell awaited

    • November 14, 2024
    Asia FX weak as dollar surges to 1-year high on sticky inflation; Powell awaited

    Oil prices muted after mixed US inventory data; more demand cues awaited

    • November 14, 2024
    Oil prices muted after mixed US inventory data; more demand cues awaited

    Oil prices edge down, forecasts for higher oil output, weak demand growth weigh

    • November 14, 2024
    Oil prices edge down, forecasts for higher oil output, weak demand growth weigh

    Japan planning $87 billion extra budget to fund stimulus package, paper says

    • November 13, 2024
    Japan planning $87 billion extra budget to fund stimulus package, paper says

    Oil rebounds slightly on short-covering as strong dollar caps gains

    • November 13, 2024
    Oil rebounds slightly on short-covering as strong dollar caps gains