Gold Prices Steady Near Two-Week High

Gold prices steadied near a two-week high in Asian trade on Wednesday due to geopolitical instability in Asia and the Middle East, which bolstered safe-haven demand.

The yellow metal attracted interest as markets became risk-averse ahead of key U.S. inflation data expected later today, influencing rate outlooks.

Copper prices rose sharply amid sustained optimism over stimulus measures in China, the world's top copper importer, supported by positive import data from the country.

Spot gold remained steady at $2,694.16 an ounce, while gold futures for February increased by 0.8% to $2,739.82 an ounce by 23:29 ET (04:29 GMT).

China-Taiwan and Syria Tensions Spur Haven Demand

Gold gains this week coincided with escalating geopolitical tensions in the Middle East after rebels ousted the Syrian government, raising concerns about Iran's influence in the region.

In Asia, Taiwan heightened alert in response to China's largest maritime maneuvers around the island in decades, featuring around 90 ships in reported war drills.

Political volatility in South Korea also captured attention as President Yoon Suk Yeol faced criminal charges following a failed attempt to impose martial law last week.

Anticipation of CPI Data and Stronger Dollar

Meanwhile, risk appetite was tempered ahead of crucial U.S. Consumer Price Index data, which could affect the Federal Reserve's interest rate decisions.

Although the dollar strengthened prior to the CPI reading, it did little to inhibit gold's gains, as market sentiment remained that the Fed would reduce rates by 25 basis points next week.

Other precious metals saw mixed performance: platinum futures rose 0.3% to $950.80 an ounce, while silver futures dipped 0.2% to $32.678 an ounce.

Positive Outlook for Copper Amid China Stimulus

Benchmark copper futures on the London Metal Exchange increased by 0.4% to $9,277.50 a ton, and February copper futures rose 0.6% to $4.2978 a pound.

Copper has been buoyed this week after China's commitment to easing monetary policy and implementing targeted fiscal measures to stimulate economic growth.

Attention now shifts to China’s Central Economic Work Conference, beginning Wednesday, which is expected to outline the economic agenda for 2025, including proposed stimulus measures.

Additionally, data showing a significant rise in Chinese copper imports through November bolstered market sentiment.