Gold Prices Steady Amid U.S. Interest Rate Speculations

Gold prices inched higher in Asian trading on Tuesday but retained most of their losses this week. Anticipation of more cues on U.S. interest rates has kept the dollar buoyant.

The greenback had risen sharply on Monday after U.S. President-elect Donald Trump threatened tariffs against the BRICS group. Political turmoil in France further dented the euro and favored the dollar.

Spot gold rose 0.1% to $2,640.77 an ounce, while February gold futures increased 0.2% to $2,663.66 an ounce as of 23:16 ET (04:16 GMT).

Gold Under Pressure Ahead of Powell Speech and Payrolls Data

The yellow metal faced pressure from dollar strength as investors leaned toward the greenback ahead of further U.S. monetary policy cues this week.

Several Fed officials are scheduled to speak, with notable attention on Chair Jerome Powell’s address on Wednesday. This comes weeks before the Fed’s final meeting of the year, where a 25 basis point cut is widely expected.

Uncertainties persist regarding the long-term outlook for rates, especially following signs of stubborn inflation and a robust labor market. Nonfarm payrolls data for November releases this Friday, potentially influencing the Fed's rate outlook. A strong reading is anticipated as the impact of recent hurricane-related disruptions fades.

Concerns surrounding the Trump administration’s expansionary and protectionist policies could also affect interest rates and inflation expectations. Higher rates typically discourage investment in non-yielding assets like gold.

Other precious metals showed mixed results on Tuesday. Platinum futures fell 0.3% to $948.15 an ounce, while silver futures rose 0.6% to $31.058 an ounce.

Copper Dips Amid Persistent China Headwinds

In the industrial metals sector, copper prices retreated due to potential trade and economic challenges for China's economy, the leading importer. This week, the U.S. imposed stricter controls on chipmaking technology supply to China.

Benchmark copper futures on the London Metal Exchange decreased by 0.1% to $8,994.0 a ton, and February copper futures were down 0.3% to $4.1282 a pound.

Copper found some support from positive business activity readings in China, indicating Beijing's recent stimulus measures had a positive impact. However, traders await further signals from two crucial political meetings in December.

Worsening trade relations between the U.S. and China may also negatively impact China’s economy, reducing its demand for copper.