Investing.com-- Gold prices retreated from one-month high Friday, as uncertainty over U.S. interest rates and policy under incoming President Donald Trump spurred some haven demand.
Gold gave up early gains as the dollar cut losses, with spot prices down at 0.46% to $2,702.06 an ounce by 4:31 p.m. ET (21:00 GMT). Gold futures fell 0.4% to $2,739.64 an ounce, although both indicators were close to their strongest level since mid-December.
Rate uncertainty, Trump jitters fuel some gold demand
The yellow metal saw some haven demand this week as traders speculated over the path of U.S. interest rates, amid mixed signals. While inflation did read softer for December, it still remained relatively high.
Retail sales and jobless claims data also signaled resilience in the U.S. economy, which gives the Federal Reserve less impetus to cut interest rates quickly.
Markets were also on edge over just what Trump’s policies will entail for inflation and the economy. Trump- who takes office from Monday- has vowed to impose steep trade tariffs on several countries, which could underpin inflation in the long term.
But gold’s overall gains were still limited, as the signing of a U.S.-brokered ceasefire between Israel and Hamas pointed to lower geopolitical tensions in the Middle East. This sapped some haven demand for gold.
Other precious metals were in mixed. Platinum futures rose 1.7% to $964.35 an ounce, while silver futures fell 2.2% to $31.023 an ounce.
Copper falls despite positive Chinese data
Benchmark copper futures on the London Metal Exchange fell 0.6% to $9,193.00 a ton, while March copper futures fell 2% to $4.3522 a pound.
China’s economy grew more than expected in the fourth quarter, with GDP at 5.4%. This brought China’s annual GDP up to 5% for 2024, keeping it in line with Beijing’s target.
Strength in the Chinese economy was driven chiefly by a string of aggressive stimulus measures, with Beijing seen gearing up to provide more support in the face of U.S. trade headwinds.
Copper prices were sitting on strong gains over the past two weeks, amid bets that Chinese demand will pick up on more stimulus measures. China’s copper imports also hit a 13-month high in December.