Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Gold prices in a holding pattern in anticipation of more rate cues

Published Feb 08, 2024 05:34
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
XAU/USD
+0.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
+0.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
+0.31%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DXY
-0.13%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com-- Gold prices drifted slightly lower on Thursday, taking little support from a decline in the dollar and yields as markets remained on edge over the prospect of higher-for-longer U.S. interest rates. 

But the yellow metal stuck largely within a trading range of $2,000 and $2,050 established over the past week, with traders now awaiting more cues on the path of interest rates.

Gold prices fell within a holding pattern after robust U.S. economic data and a chorus of hawkish Federal Reserve comments saw markets largely price out expectations for early interest rate cuts this year. 

With the central bank now expected to begin trimming rates only from June 2024, the near-term outlook for gold remained cloudy. A spike in the dollar- to three-month highs- also pressured bullion prices, although the greenback saw a heavy dose of consolidation this week.

Spot gold fell 0.1% to $2,032.61 an ounce, while gold futures expiring in April fell 0.2% to $2,047.55 an ounce by 00:13 ET (05:13 GMT). 

Higher interest rates diminish gold's appeal by increasing the opportunity cost of investing in the yellow metal.

Gold to remain rangebound, but downside limited by other factors- Goldman Sachs 

Goldman Sachs (NYSE:GS) analysts wrote in a recent note that while the prospect of later U.S. rate cuts presented some headwinds to bullion prices, any major losses in gold would be limited by a slew of factors.

Analysts expect physical demand for gold to remain high on consistent buying by central banks and steady demand in emerging markets. 

Goldman Sachs analysts maintained their 12-month target price for spot gold at $2,175 an ounce. 

Increased geopolitical uncertainty, especially after the rejection of a Israel-Hamas ceasefire this week, also pointed to higher safe-haven demand for gold in the near-term. 

Copper prices near three-week low on negative China cues 

Among industrial metals, copper prices rose slightly on Thursday but were pinned near three-week lows following more weak economic cues from top importer China.

Copper futures expiring in March rose 0.4% to $3.7523 a pound, but were just above their lowest levels since mid-January.

Consumer inflation data from China read weaker than expected for January, while producer inflation shrank for a sixteenth consecutive month. The consumer price index also fell at its worst pace since late-2009.

The data indicated that China’s economy was still struggling with deflation amid slowing growth, which in turn factored into concerns over a slowdown in Chinese copper demand. 

Gold prices in a holding pattern in anticipation of more rate cues
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Dirk Reynen
Dirk Reynen Feb 08, 2024 7:58
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Highly manipulated price of XAU what we see is not its true value 3x would be more factual
Matt Hester
Matt Hester Feb 08, 2024 5:38
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes, rates will be higher for much longer.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email