Investing.com– Gold prices moved little in Asian trade on Friday as stronger-than-expected inflation data spurred more fears that the Federal Reserve will signal higher-for-longer interest rates at an upcoming meeting.
But this sentiment did little to deter a rally in copper prices, which surged to new 11-month highs on Friday as expectations of substantially tighter Chinese supplies spurred heavy buying in the red metal.
Bullion prices, on the other hand, were pressured by a stronger . The greenback rose to an over one-week high after strong inflation readings this week, while traders also positioned for an upcoming .
rose 0.1% to 2,163.98 an ounce, while expiring in April steadied at $2,168.05 an ounce by 01:17 ET (05:17 GMT).
Gold nurses tumble from record high as Fed meeting approaches
Gold prices were set for weekly losses after falling sharply from record highs hit on Monday.
Pressure on the yellow metal came chiefly from growing angst over a Fed meeting next week, especially as and inflation signals read stronger than expected for a third straight month.
Sticky inflation saw traders grow fearful of any hawkish signals from the Fed, especially as the central bank signaled that its plans for interest rate cuts in 2024 will be largely dictated by the path of inflation. Higher-for-longer rates bode poorly for gold and other non-yielding assets.
Still, ANZ analysts said in a recent note that while gold may see some weakness in the near-term, the yellow metal still had a slew of factors working in its favor for the rest of the year. They also hiked their 2024 target price for gold to $2,300 an ounce from $2,200 an ounce.
Other precious metals rose on Friday and were set to outperform gold for the week. rose 0.2% to $932.50 an ounce, while rose 0.6% to $25.212 an ounce.
Copper prices rally to 11-mth highs on China supply shortage
Three-month on the London Metal Exchange surged 1.5% on Friday and crossed the $9,000 a ton level for the first time since April 2023. One-month U.S. jumped 1.3% to $4.1022 a pound- a 11-month high.
Both contracts were set to add over 5% this week- their best weekly gain so far in 2024.
Copper’s rally was triggered chiefly by media reports stating that major Chinese copper smelters were planning to carry out joint production cuts, limiting the supply of refined copper.
Citi analysts said that the copper rally still had legs, and that they were overweight on copper with a potential upside of up to $9,500 a ton by June 2024.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
