By Ambar Warrick
Investing.com– Gold prices moved little on Monday but hovered around key support levels as markets sought more clarity on the path of U.S. monetary policy in the coming months, while copper prices were muted as more COVID disruptions in China appeared set to dent demand.
The are set to release on Thursday, and are likely to provide more insight on how the central bank intends to proceed with raising interest rates.
While markets are pricing in the
possibility of a relatively smaller rate hike
in December after inflation eased more than expected in recent months, recent comments from Fed members suggested that interest rates could keep rising for longer than expected.
This outlook is positive for the and , and is likely to weigh on metal markets. The greenback appeared to have found a bottom after recent losses, and rose 0.1% to 107 on Monday.
rose 0.1% to $1,752.81 an ounce, while crept up to $1,754.90 an ounce by 19:05 ET (00:05 GMT). Both instruments sank nearly 2% last week after Fed members warned of higher interest rates.
A series of sharp rate hikes by the Fed weighed heavily on metal markets this year, as rising yields dented the appeal of non-yielding assets such as gold.
While metal markets rallied earlier this month on signs of easing U.S. inflation, they are expected to remain pressured in the coming months, given that inflation is still trending well above the Fed’s annual 2% target.
Among industrial metals, copper prices moved little on Monday after logging bruising losses last week on concerns over major importer China.
were steady around $3.6405 a pound after tumbling 7.2% last week- their worst week since late-August.
China locked down more parts of the country, as it grapples with its worst COVID outbreak in seven months. Economic growth in the country slowed drastically this year under the country’s strict zero-COVID policy, which saw the imposition of a slew of disruptive lockdowns.
This weighed on the country’s appetite for commodities.
Growing fears of a global recession also dampened the outlook for copper, despite signs of tightening supply.
Follow News Everything for News Today, Breaking News, Latest News, World News, Breaking News Headlines, National News, Today\’s News
#Gold #hovers #copper #muted #hawkish #Fed #fears #persist
Leave a Reply