Investing.com– Gold Prices Rise

Gold prices rose in Asian trade on Thursday, staying close to record highs as a rebound in the dollar cooled ahead of key inflation data likely to influence interest rate cuts.

Some safe haven demand also buoyed bullion prices, especially after underwhelming earnings from NVIDIA Corporation (NASDAQ:NVDA) rattled global equity markets.

Spot gold rose 0.4% to $2,515.76 an ounce, while gold futures expiring in December rose 0.4% to $2,515.91 an ounce by 00:50 ET (04:50 GMT).

Gold Remains Close to Record Highs Before Inflation, GDP

Spot prices were less than $20 away from a record high of $2,532.05 an ounce hit last week.

While the yellow metal struggled to make new highs since then, it remained well-bid amid growing conviction that the Federal Reserve will cut interest rates in September, a scenario that benefits gold. A softer dollar also aided metal markets, although the greenback rebounded sharply from 13-month lows this week.

Safe haven demand factored into gold’s resilience, as tensions in the Middle East showed little signs of abating, and the suspension of oil production in Libya added uncertainty.

The safe haven trade was furthered by a drop in shares of NVIDIA, which sparked losses across broader equity markets over fears that the artificial intelligence trade was cooling.

Focus in the coming days was squarely on more U.S. economic cues. A revised reading on gross domestic product data is due later on Thursday, after a preliminary reading showed the economy remained strong in the second quarter.

More closely watched will be PCE price index data on Friday, the Fed’s preferred inflation gauge, likely to influence expectations for rate cuts.

Markets are split between a 25 or 50 basis points cut in September, according to CME Fedwatch.

The prospect of lower rates weakened the dollar and buoyed broader metal markets, although they lagged behind gold. Platinum futures rose 0.5% to $942.50 an ounce, and silver futures rose 0.8% to $29.858 an ounce.

Copper Steadies, China Sentiment Remains Weak

Among industrial metals, copper prices rose slightly on Thursday, though a rebound rally seemed to have run dry.

Benchmark copper futures on the London Metal Exchange rose 0.3% to $9,268.50 a ton, while one-month copper futures rose 0.1% to $4.2190 a pound.

Despite this, copper’s recent rebound appeared to be losing steam, especially as sentiment toward top importer China remained constrained by concerns over a renewed trade war with the West.

Still, the prospect of economic growth amid lower interest rates spurred some bets that global copper demand will improve.