Gold steadies ahead of China Q3 GDP data, more Fed cues
Investing.com-- Gold prices steadied after early declines on Tuesday as markets hunkered down before several upcoming cues on the U.S. economy, as well as a series of addresses from Federal Reserve officials.
While the yellow metal saw strong gains after the onset of the Israel-Hamas war pushed investors into safe havens, it reversed course this week after a stronger-than-expected U.S. inflation reading pushed up concerns over higher interest rates.
A lack of an immediate escalation in the war also dented any more near-term safe haven demand, while the dollar found its footing near 11-month highs.
Gold’s most-active futures contract on New York’s Comex, December, settled up $1.40, or 0.07%, at $1,935.70 an ounce, after an intraday drop to 1,924.85.
The spot price of gold, more closely watched by some traders than futures, was at $1,924.50.65 by 15:33 ET (19:33 GMT), up $4.28, or 0.2%, on the day. The session low for spot gold was $1,912.44.
U.S. consumer inflation read higher-than-expected for September, data showed last week, ramping up concerns that the Fed will remain hawkish for longer, in order to bring down sticky inflation.
A string of Fed officials are also set to speak this week, most notably Fed Chair Jerome Powell on Thursday. Powell’s comments will be closely watched in the wake of the strong inflation readings, given that the Fed Chair had signaled higher for longer rates at the Fed’s previous meeting.
Higher interest rates bode poorly for gold, given that they increase the opportunity cost of investing in the yellow metal. This trade battered gold through the past year, and is expected to limit any major gains until the Fed starts cutting interest rates.
Among industrial metals, copper prices reversed
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