Gold Prices Steady Amid Strong Dollar

Gold prices moved little in Asian trade on Thursday amid persistent pressure from a stronger dollar, with focus turning to key upcoming inflation data for more cues on interest rates.

Industrial Metals

Among industrial metals, copper prices advanced, recovering some measure of recent losses as top importer China outlined plans to implement fiscal stimulus measures.

However, metal prices were pressured by a strong dollar as traders priced in a slower pace of interest rate cuts by the Federal Reserve. This notion had dragged gold off record highs over the past week.

Gold Pricing

• Spot gold rose 0.2% to $2,613.15 an ounce.
• Gold futures expiring in December rose 0.2% to $2,630.20 an ounce by 00:16 ET (04:16 GMT).

CPI Data Awaited for Rate Cues

Focus was squarely on consumer price index inflation data due later on Thursday, likely influencing the Federal Reserve’s outlook on interest rates.

The reading is expected to show:
– Headline CPI eased slightly
– Core CPI remained sticky in September.

Sticky inflation and strength in the labor market give the Fed less impetus to cut interest rates sharply. Strong payrolls data released last week had sparked this notion, with traders now pricing out expectations for another 50 basis point cut by the Fed in November.

The minutes of the Fed’s September meeting showed policymakers supported the bank’s 50 bps cut, but remained uncommitted to the pace of future rate cuts. Smaller rate cuts hurt gold and other non-yielding assets due to increased opportunity cost.

Other Precious Metals

Other precious metals advanced on Thursday but were nursing steep losses:
– Platinum futures rose 1% to $969.75 an ounce.
– Silver futures rose 0.2% to $30.742 an ounce.

Copper Edges Higher Amid China Stimulus

Benchmark copper futures on the London Metal Exchange rose 0.6% to $9,749.50 a ton, while December copper futures rose 0.5% to $4.4355 a pound. Both contracts fell sharply this week as recent monetary stimulus measures from China largely underwhelmed.

Beijing devised plans for fiscal stimulus measures, with the Chinese finance ministry set to hold a briefing on Saturday for further details. Investors seek targeted fiscal measures to boost growth in the world’s biggest copper importer, which is grappling with rampant deflation and a protracted property market crash.