Investing.com-- Gold prices steadied in Asian trade on Thursday, remaining close to record highs as focus turned to an upcoming address by Federal Reserve Chair Jerome Powell, while key U.S. economic readings also loomed.
Among industrial metals, copper prices steadied after a recent rally to two-month highs, as sentiment over more stimulus measures in top importer China cooled.
Metal markets were pressured by an overnight rebound in the dollar, as the greenback surged from over one-year lows amid persistent speculation over just how the Fed will reduce rates further after a 50 basis point cut last week.
Spot gold rose 0.2% to $2,661.78 an ounce, while gold futures expiring in December steadied at $2,685.0 an ounce by 00:18 ET (04:18 GMT). Spot prices briefly hit a record high of $2,670.52 on Wednesday.
Gold steadies with Powell, econ. data on tap
The yellow metal remained perched near recent peaks, with focus turning squarely to an address by Powell due later in the day.
Powell’s speech comes after several Fed officials said this week that they supported the central bank’s outsized rate cut from last week. But they offered mixed signals on how the bank plans to cut rates further.
Other Fed officials are also set to speak in the coming days.
The central bank’s 50 bps cut marks the beginning of an easing cycle that Citi analysts expect to lower rates by a total 125 bps by the year-end. But the Fed signaled a largely data-driven approach to further easing.
To that end, a revised reading on second-quarter gross domestic product data in due later on Thursday, as is weekly jobless claims data. PCE price index data- the Fed’s preferred inflation gauge- is due on Friday.
Other precious metals rose on Thursday. Platinum futures rose 0.6% to $997.85 an ounce, while silver futures rose 0.5% to $32.188 an ounce.
Copper prices steady as China sentiment cools
Among industrial metals, copper prices steadied after rallying to two-month highs on optimism over more stimulus measures from top importer China.
Benchmark copper futures on the London Metal Exchange fell 0.1% to $9,800.50 a ton, while one-month copper futures steadied at $4.48553 a pound.
Both contracts rallied sharply after China released more stimulus measures this week, including a 50 bps reduction in bank reserve requirements, as well as a cut to mortgage rates.
But analysts argued that Beijing needed to do more to support growth, especially on the fiscal front.