Gold prices slipped on Tuesday as investors turned their attention to negotiations surrounding the U.S. spending limit. Despite positive comments from both Democrat and Republican lawmakers, safe-haven demand for gold remained limited.
Spot gold dipped 0.1% to $1,970.45 an ounce, while gold futures fell 0.3% to $1,972.25 an ounce. This drop comes after a week of uncertainty surrounding the debt ceiling, which had a minimal impact on the precious metal until now.
In addition to gold, other precious metals such as platinum and silver futures also saw a decline. Meanwhile, copper prices managed to stabilize after facing steep losses in recent sessions.
Copper futures rose 0.1% to $3.6822 a pound, although the red metal is down over 5% for the month of May due to concerns over a potential global recession. Weak economic data from China has contributed to this downward trend, highlighting a bleak outlook for copper demand.
Furthermore, fears of slowing economic growth have continued to weigh on industrial metal prices, particularly as weak readings from both the U.S. and China persist. The strength of the dollar has also played a role in suppressing metal prices, as investors anticipate high U.S. interest rates to remain in place.
Looking ahead, investors are keeping a close eye on U.S. economic indicators and the Federal Reserve’s upcoming meeting minutes release. Traders are keen to see if the Fed will signal a pause in its rate hike cycle in June, which could further impact metal prices in the coming weeks.
