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Investing.com — Gold prices rose in Asian trade on Wednesday, paring recent rebound, especially as the dollar weakens on expectations for further clues on U.S. interest rates from late January Federal Reserve minutes. It was extended.
Still, the yellow metal largely remained within a trading range of $2,000 to $2,050 an ounce set last month, as the outlook for gold was clouded by the prospect of a prolonged rise in U.S. interest rates.
By 00:21 ET (5:21 GMT), the price rose 0.3% to $2,029.89 an ounce, while the price for April expiry rose 0.1% to $2,040.75 an ounce.
Fed minutes, speakers wait for interest rate cues
The focus was now squarely on seeking further clues about the likely trajectory of US interest rates.
The central bank kept interest rates unchanged during the meeting, but significantly downplayed expectations for an early rate cut.
Since then, a series of better-than-expected U.S. inflation figures have led markets to further factor in the possibility of early interest rate cuts, weighing on gold prices.
The yellow metal briefly fell below the $2,000-an-ounce level in early February, but has rebounded strongly from two-month lows.
In addition to Wednesday's Fed minutes, this week will also feature a series of speeches from Fed officials, including members of the Fed's rate-setting committee, , and .
Rising US interest rates bode poorly for gold, given that they increase the opportunity cost of investing in the yellow metal. But given that U.S. interest rates are still expected to eventually fall in 2024, prices for gold and other metals are likely to rise significantly, Goldman Sachs analysts said this week. mentioned in the memo.
Other precious metal prices also rose on Wednesday. It rose 0.3% to $913.10 an ounce and rose 0.2% to $23.192 an ounce. Both metals also continue to post losses through 2024.
Copper prices hit three-week high on optimism in China
Among industrial metals, copper prices rose on Wednesday to a three-week high, extending a strong overnight rally following a series of stimulus measures from China, its biggest importer.
The March deadline rose 0.4% to $3.8712 per pound.
The People's Bank of China posted a better-than-expected profit on Tuesday, while the Chinese government also announced a raft of support measures targeting the country's struggling real estate market to boost economic growth.
Moreover, official statistics showed that personal consumption and travel demand increased significantly during the Lunar New Year holiday, raising hopes for a consumption recovery in China, a key driver of the economy.
