Gold prices steady amid rate-cut uncertainty; Copper cools from China gains

investing.com:

Investing.com-- Gold prices edged lower in Asian trade on Wednesday, sticking to a trading range established over the past week as markets grew more uncertain over U.S. interest rate cuts this year.

Among industrial metals, copper prices inched lower after increased optimism over China drove stellar gains earlier this week.

Gold was reeling from a weak start to 2024, having fallen as low as $2,000 an ounce earlier this month as traders began steadily pricing out bets that the Federal Reserve will cut interest rates as soon as March 2024.

But the yellow metal rebounded on some safe-haven demand, especially as geopolitical conditions in the Middle East worsened. This rebound also saw gold establish a trading range of between $2,000 to about $2,050 an ounce over the past week.

Spot gold fell 0.3% to $2,023.92 an ounce, while gold futures expiring in February fell 0.1% to $2,024.65 an ounce by 00:17 ET (05:17 GMT).

Strength in the dollar — which traded near six-week highs on Wednesday- also weighed on gold prices.

Metal markets were now seeking more cues on when the Fed could potentially begin trimming interest rates this year.

Fourth-quarter gross domestic product data due on Thursday is expected to show some cooling in U.S. economic growth, while PCE price index data- the Fed’s preferred inflation gauge- is due on Friday and is expected to reiterate that inflation remained sticky in December.

The data comes just days before the Fed’s first meeting for 2024, where the central bank is widely expected to keep rates on hold. But any cues on planned rate cuts will be in close focus.

While gold prices are expected to eventually benefit from lower interest rates this year, they will likely see a muted performance in the