Gold prices steady, copper falls amid uncertainty

Gold prices held steady in Asian trade on Tuesday, hovering near 11-day lows as investors awaited clarity on US politics and monetary policy ahead of a crucial Federal Reserve meeting next week.

Spot gold edged up 0.1 per cent to $2,398.38 per ounce, while gold futures rose 0.2 per cent to $2,399.40 at 04:33 GMT. The yellow metal has retreated from record highs reached earlier in July amid political uncertainty and a resilient dollar.

Uncertainty in the US presidential race increased this week as President Joe Biden withdrew his reelection bid and endorsed Vice President Kamala Harris. Harris is expected to secure the Democratic nomination, pending formal confirmation.

Anticipation of potential interest rate cuts from September has supported gold prices this year, but the central bank is expected to maintain rates steady at its upcoming meeting.

Other precious metals declined, with platinum futures falling 0.1 per cent to $959.65 per ounce and silver futures dropping 0.5 per cent to $29.188 per ounce.

In the industrial metals market, copper prices extended recent losses as concerns over China’s economic outlook deepened. Benchmark copper futures on the London Metal Exchange rose 0.2 per cent to $9,234.50 a ton, but one-month copper futures fell 0.3 per cent to $4.1873 a pound, both hovering near 3-1/2-month lows.

China’s economic growth slowed in the second quarter, and an unexpected interest rate cut failed to boost investor confidence. The Chinese Communist Party’s Third Plenum provided little clarity on additional economic stimulus measures.

Furthermore, the possibility of a Donald Trump presidency and tighter US monetary policy has added to the bearish sentiment surrounding China-exposed assets.

Attribution: Investing.com