Gold prices steady before Fed meeting; copper rallies higher
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 dollar. The greenback rose to an over one-week high after strong inflation readings this week, while traders also positioned for an upcoming Fed meeting.
Spot gold rose 0.1% to 2,163.98 an ounce, while gold futures expiring in April steadied at $2,168.05 an ounce by 01:17 ET (05:17 GMT).
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 consumer and producer 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. Platinum
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