Gold Prices Steady Amid Economic Focus

Gold prices steadied in Asian trade on Thursday, remaining close to record highs as attention shifted to an upcoming address by Federal Reserve Chair Jerome Powell, alongside key U.S. economic readings.

Industrial Metals and Copper Prices

Copper prices also steadied after a recent rally to two-month highs, amid cooling sentiment regarding more stimulus measures in top importer China. Metal markets faced pressure from an overnight rebound in the dollar, which surged from over one-year lows, amidst speculation on the Fed's future rate reductions after last week's 50 basis point cut.

Spot gold increased by 0.2% to $2,661.78 an ounce, while December gold futures steadied at $2,685.0 an ounce as of 00:18 ET (04:18 GMT). Spot prices briefly hit a record high of $2,670.52 on Wednesday.

Gold’s Stability with Upcoming Fed Address

The yellow metal remained near recent peaks with attention focused on Powell’s speech later in the day. Following a 50-bps cut, several Fed officials voiced support for the move while providing mixed signals about further rate cuts.

Citi analysts anticipate a total rate cut of 125 bps by year-end but stress the Fed's data-driven approach to future easing. Key economic data, including revised second-quarter GDP and weekly jobless claims, are expected on Thursday, with PCE price index data due Friday, which is the Fed’s preferred inflation gauge.

Rise in Other Precious Metals

Other precious metals experienced gains, with platinum futures rising 0.6% to $997.85 an ounce, and silver futures increasing by 0.5% to $32.188 an ounce.

Copper Prices and China Sentiment

In industrial metals, copper prices steadied after rallying to two-month highs based on optimism for additional stimulus from China. Benchmark copper futures on the London Metal Exchange fell 0.1% to $9,800.50 per ton, while one-month copper futures remained steady at $4.48553 per pound. There was a sharp rally after China released more stimulus measures earlier in the week, including a 50-bps reduction in bank reserve requirements and a cut to mortgage rates.

Analysts, however, argue that more support is needed from Beijing, particularly on the fiscal front.