Investing.com-- Gold prices rose in Asian trade on Wednesday, remaining in sight of record highs amid increased safe haven demand after a devastating earthquake in Taiwan, while uncertainty over U.S. interest rates also boosted gold demand.
A broad sell-off in stock markets, as risk appetite deteriorated, also fueled demand for gold, even as the dollar and U.S. Treasury yields shot up tracking hawkish comments from top Federal Reserve officials.
Risk appetite was dealt a fresh blow on Wednesday after an earthquake in Taiwan battered the island’s infrastructure and its top chipmaking factories, while also sparking Tsunami warnings in parts of Japan.
Spot gold rose 0.3% to $2,286.40 an ounce, remaining in sight of a record high of $2,288.43 hit on Tuesday, while gold futures expiring in June rose 1.1% to $2,306.25 an ounce and were just below lifetime highs of $2,308.85 an ounce by 00:47 ET (04:47 GMT).
The yellow metal was further encouraged by the dollar retreating from 4-½ month highs on Wednesday.
Gold prices keep $2,300 in sight despite Fed pressure
Increased safe haven demand helped gold prices largely power past increased concerns over higher for longer U.S. interest rates.
Several Fed officials said in separate addresses that sticky inflation and strength in the labor market could potentially delay the Fed’s plans to cut interest rates.
Their comments came just days before key nonfarm payrolls data for March, due this Friday. The data has consistently beaten expectations in recent months, amid persistent strength in the U.S. labor space.
Other precious metals also benefited from improved safe haven demand and dollar weakness. Platinum futures rose 0.3% to $940.05 an ounce, while silver futures rose 2.2% to $26.480 an ounce.
Copper prices encouraged by positive Chinese data
Among industrial metals, copper prices rose on Wednesday and remained in sight of recent 11-month highs, following positive purchasing managers index (PMI) data from top importer China.
Three-month copper futures on the London Metal Exchange rose 0.6% to $9,070.50 a ton, while one-month U.S. copper futures rose 0.5% to $4.1022 a pound.
Private PMI data on Wednesday showed growth in China’s services sector improved in March. The reading came just days after positive official PMIs on China’s manufacturing sector, which signaled improving economic conditions in the world’s largest copper importer.