Gold prices rise amid Fed pause bets, copper gains on China stimulus
Investing.com-- Gold prices rose on Friday and were headed for a positive week amid increasing bets that the Federal Reserve was close to ending its rate hike cycle, while copper prices rose as major importer China unveiled more stimulus measures.
Bullion prices were for a third straight positive week, and appeared to have found stability in the high $1,900s on the prospect of fewer U.S. interest rate hikes this year.
Weakness in the dollar aided most commodities priced in the greenback, although the dollar did rebound from 15-month lows this week, spurring some profit taking in gold.
Spot gold rose 0.1% to $1,971.08 an ounce, while gold futures rose 0.1% to $1,973.10 an ounce by 22:35 ET (02:35 GMT). Both instruments were set to add between 0.5% and 1% for the week.
Among industrial metals, copper prices rose sharply on Friday after major importer China unveiled measures aimed at boosting consumption in the country, specifically for the automobile and consumer electronics sector.
The move pushed up hopes that the world’s largest copper importer will roll out more supportive measures for the economy, after data released earlier this week showed that Chinese economic growth slowed substantially in the second quarter.
Copper futures jumped 0.7% in Asian trade to $3.8555 a pound.
Increased spending in the automobile and electronics sector also potentially heralds more copper demand in the country, given its widespread use in the two industries.
But other drivers of copper demand- specifically China’s massive real estate sector- are still struggling.
Metal markets were now squarely focused on an upcoming Fed meeting next week, with the central bank widely expected to hike interest rates by 25 basis points.
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