Gold Prices Steady in Asia

Gold prices steadied in Asian trade on Monday as traders awaited more cues on U.S. interest rates from a series of Federal Reserve speakers this week, alongside ongoing bets on a November cut.

Copper Prices Dip

Among industrial metals, copper prices dipped due to underwhelming signals regarding fiscal stimulus in China, the top importer, compounded by weak inflation data raising concerns about the country's economic outlook.

Gold Near Record Highs

Gold remained near September's record high, with the prospect of an eventual decline in U.S. interest rates continuing to buoy precious metals. Persistent fears surrounding the Middle East conflict also supported safe-haven demand.

Spot gold fell 0.1% to $2,655.82 an ounce, while gold futures expiring in December also dropped 0.1% to $2,672.60 an ounce by 23:53 ET (03:53 GMT).

Fed Outlook

Gold prices remained close to recent peaks, though further momentum was held back by expectations of a slower pace of interest rate cuts by the Fed. This week, several Fed officials are expected to speak, starting with Minneapolis Fed President Neel Kashkari and Governor Christopher Waller later on Monday.

The Fed is widely anticipated to cut rates by a smaller, 25 basis points in November, particularly after recent inflation and labor market data exceeded expectations. Nevertheless, a decline in U.S. rates is expected to favor gold as lower rates reduce the opportunity cost associated with investing in non-yielding assets.

Gold also benefits from safe-haven demand as traders fear potential escalation in the Middle East, especially if Israel attacks Iran’s oil infrastructure.

Other Precious Metals

On Monday, other precious metals saw declines. Platinum futures dropped 0.9% to $985.45 an ounce, while silver futures decreased 0.8% to $31.495 an ounce.

Copper Prices Fall

Benchmark copper futures on the London Metal Exchange fell 0.6% to $9,749.50 a ton, with December copper futures down 0.8% to $4.4505 a pound. Weak economic indicators from China, the world’s largest copper importer, significantly impacted prices.

China’s finance ministry reported it would initiate various fiscal stimulus measures to bolster economic growth. However, the lack of specific details concerning these measures—specifically their size and timing—left investors disappointed. Additionally, China’s inflation data also fell short, as consumer inflation unexpectedly eased in September, while producer inflation shrank for the 23rd consecutive month.