Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Gold steadies ahead of U.S. inflation data, copper eyes weekly gains

Commodities Dec 09, 2022 12:16
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
XAU/USD
-2.49%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
-2.75%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
-1.46%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XAG/USD
-4.75%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Silver
-5.19%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PL
-5.09%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick

Investing.com-- Gold and copper prices moved little on Friday as investors hunkered down ahead of key U.S. inflation data due later in the day, while the red metal headed for a second positive week amid optimism over loosening COVID restrictions in China.

Bullion prices were set to close the week a touch lower after paring a majority of earlier losses, as fears of a recession invited some safe haven plays back into the yellow metal. Recent weakness in the dollar also benefited gold prices.

Spot gold hovered around $1,789.43 an ounce, while gold futures steadied at $1,801.25 an ounce by 18:56 ET (23:56 GMT). Both instruments were set to lose about 0.4% this week, having sunk as low as $1,765.86 an ounce.

Focus is now squarely on U.S. producer price index inflation data for November, due later in the day. The reading is expected to have eased further from the prior month, signaling that rising interest rates and tightening monetary conditions are having their intended effect.

But any signs that inflation remained sticky during the month could trigger more losses in markets, given that the Federal Reserve is likely to hike interest rates for longer in such a scenario. Several market participants warned that this could trigger a recession in 2023.

The PPI reading is expected to herald a similar trend in the more closely watched consumer price index, which is set to be released next week.

Rising interest rates were the biggest weight on gold prices this year, dragging the metal off annual highs as the opportunity cost of non-yielding assets rose.

The direction of the Fed’s interest rate hikes in 2023 depends largely on inflation, which is still trending well above the central bank’s target range.

Other precious metals also moved little on Friday. Platinum futures rose 0.1%, while silver futures added 0.2%.

Among industrial metals, copper prices were flat, but were headed for their second consecutive week of gains amid optimism over a Chinese economic reopening.

Copper Futures traded around $3.8818 a pound, and were set to add about 0.8% this week.

Prices of the red metal took positive cues from China announcing the relaxation of several anti-COVID movement restrictions and testing mandates this week. Markets hope that the move will drive a recovery in the world’s largest copper importer.

But given that the country is still struggling with record-high increases in infections, a broader reopening may be further away than expected.

Gold steadies ahead of U.S. inflation data, copper eyes weekly gains
 

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.
 
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