Gold prices steadied in Asian trade Wednesday after hitting an all-time peak earlier this week. Lingering expectations of lower U.S. interest rates buoyed bullion and drove the dollar lower, analysts said.
Spot gold was nearly flat at $2,515 an ounce after surpassing $2,531 on Tuesday. December Comex gold futures edged up 0.1% to $2,553. Focus now turns to Fed Chair Jerome Powell’s speech at Jackson Hole on Friday for clues on the U.S. rate outlook.
Minutes from the Fed’s July meeting are also due later in the session and may provide more dovish signals on policy. The prospect of rate cuts boosts non-yielding gold by reducing opportunity costs.
Other precious metals like platinum and silver posted modest gains versus the softer dollar. Platinum futures dipped 0.1% to $956 while silver futures rose 0.1% to $29.54 an ounce.
Industrial metals were mixed. December copper futures climbed 0.4% to $9,223 per ton in London as recent China export data fueled some optimism about demand in the top importer. But broader economic weakness in China amid a prolonged recovery capped overall copper upside, traders said.
The latest readings on U.S. rates and the dollar’s trajectory will continue determining bullion’s fate this week. With global risks high, lower rates support safe-haven gold demand.
