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Investing.com– Gold prices fell from more than two-week highs in Asian trade on Thursday, as investors weighed the implications of U.S. consumer inflation data on the outlook for interest rates.
Among industrial metals, copper prices rose further on optimism about additional stimulus measures from top importer China.
Gold made some gains this week as heightened geopolitical tensions in the Middle East and Asia fueled safe-haven demand. But overall gains in metals markets were still limited by the strength of the dollar.
was down 0.1% at $2,715.14 an ounce, while the February expiration was down 0.3% at $2,747.61 an ounce by 11:35 p.m. ET (04:35 GMT).
In-line CPI data cements rate cut bets
Gold rose sharply in overnight trade as inflation data saw traders increase bets that the Fed will cut rates next week. The market was seen pricing in a 98% chance of a 25 basis point decline, according to .
But gains in gold were held by improved risk appetite, as Wall Street indexes also rose on the prospect of lower rates in the near term.
Dollar resistance also limited gold gains, as traders favored the greenback amid increased doubts about the long-term outlook for inflation and interest rates. Wednesday’s consumer price index reading showed inflation at its strongest level in seven months – a trend expected to keep the Fed cautious about further monetary easing.
The focus is now on data due later Thursday, which comes just days before the Fed’s last meeting of the year.
The central bank’s rate outlook will be closely watched, amid mounting bets that it will adopt a slower pace of easing in 2025.
Other precious metals were mixed after posting some gains this week. rose 0.6% to $956.45 an ounce, while remaining at $32.955 an ounce.
Copper optimistic about China’s stimulus cheer
The London Metal Exchange benchmark rose 0.8% to $9,251.0 a tonne, while February rose nearly 1% to $4.3033 a pound.
Both contracts hit a one-month high on Wednesday amid increased optimism about additional stimulus measures in top importer China.
Beijing has struck its softest tone yet on easing monetary policy to support economic growth, the country’s Politburo signaled after a meeting on Monday.
China’s central economic work conference – a high-level government meeting – is due to conclude later on Thursday, setting the economic agenda for 2025 and also offering more hints about stimulus plans.
