In a quiet Asian trading session on Friday, gold prices saw a slight dip, with market participants keeping a close eye on upcoming inflation data that could impact future interest rate decisions. Spot gold prices slipped by 0.3% to $2,320.39 per ounce, while August gold futures also fell by the same percentage to $2,330.85 per ounce.
The uncertainty surrounding the U.S. economy and inflation rates has kept gold within a narrow trading range, with June proving to be a lackluster month for the precious metal. Federal Reserve officials warned of persistent inflation pressures, leading traders to be cautious leading up to the release of the Personal Consumption Expenditures (PCE) price index data on Friday.
The anticipation of higher interest rates has put downward pressure on precious metals, with traders awaiting clarity on the Federal Reserve’s policy stance. Other precious metals also saw mixed performance, with platinum futures rising by 0.6% and silver futures edging up 0.2%.
In contrast, industrial metals like copper showed varied movements, attempting to recover from losses sustained throughout June. Despite gains on Friday, copper prices recorded declines over the month, reflecting concerns over weakening global demand and trade uncertainties.
Market sentiment remains focused on upcoming data releases, including China’s Purchasing Managers’ Index (PMI) figures, which are expected to offer insights into economic conditions in the country. The complex interplay of economic data, monetary policy expectations, and geopolitical developments continues to drive investor sentiment and market dynamics in the commodities sector.
