Gold Prices Steady Amid Powell’s Address

Gold prices steadied in Asian trade on Thursday, remaining close to record highs as focus shifted to an upcoming speech by Federal Reserve Chair Jerome Powell. Key U.S. economic indicators are also anticipated.

Among industrial metals, copper prices steadied after a recent rally to two-month highs, as sentiment regarding additional stimulus measures in China cooled.

However, metal markets experienced pressure from a rebound in the dollar, which surged from over one-year lows amid ongoing speculation about how the Fed will further cut rates after a 50 basis point reduction last week.

Spot gold rose 0.2% to $2,661.78 an ounce, while December gold futures steadied at $2,685.00 an ounce by 00:18 ET (04:18 GMT). Spot prices briefly reached a record high of $2,670.52 on Wednesday.

Gold Steadies with Powell, Economic Data on Tap

The yellow metal remains near recent peaks as attention turns to Powell’s address later in the day.

His speech follows several Fed officials expressing support for last week’s significant rate cut, but offering mixed signals about future cuts.

Additional Fed officials are expected to speak in the coming days. The recent 50 basis point cut is seen as the start of an easing cycle, with Citi analysts predicting a total reduction of 125 basis points by year-end.

A revised reading on second-quarter GDP and weekly jobless claims data are due later on Thursday, while PCE price index data, the Fed’s preferred inflation gauge, is expected on Friday.

Other precious metals increased on Thursday, with platinum futures rising 0.6% to $997.85 an ounce and silver futures climbing 0.5% to $32.188 an ounce.

Copper Prices Steady as China Sentiment Cools

In industrial metals, copper prices steadied after recently surging to two-month highs, driven by optimism over more stimulus from China.

Benchmark copper futures on the London Metal Exchange dipped 0.1% to $9,800.50 a ton, while one-month copper futures remained steady at $4.48553 a pound.

Both contracts had sharply rallied following China’s announcement of additional stimulus measures, including reducing bank reserve requirements by 50 basis points and lowering mortgage rates. However, analysts contend that more robust measures from Beijing are needed to adequately support growth, particularly on the fiscal side.