Gold prices experienced on Thursday a slight decline but remained close to their recent record highs as market participants awaited further information on U.S. interest rates from upcoming data on the producer price index and retail sales.
Similarly, copper prices also retreated, but they were still near 11-month highs due to reports of production cuts by Chinese smelters, indicating tighter market conditions.
Read more: Gold prices stabilize as U.S. inflation figures cast doubt on mid-year rate cut
The broader metal markets faced pressure due to the dollar’s resilience before the release of economic data.
Gold prices are currently hovering below their record highs, with the focus on upcoming cues regarding interest rates. At 01:27 ET (05:27 GMT), spot gold fell by 0.2 percent to $2,171.06 per ounce, while gold futures expiring in April declined by 0.3 percent to $2,175.35 per ounce.
In the UAE, gold prices saw a slight decline. Twenty-four-carat gold was priced at AED255.9 per gram. Meanwhile, 22-carat remained stable at AED255.8 per gram.
Earlier in the week, bullion prices had surged to record highs of around $2,200 per ounce but quickly consolidated after the release of consumer price index data, which exceeded expectations and raised concerns about higher interest rates.
CPI strength shifts focus to PPI and retail sales data
The strong Consumer Price Index (CPI) reading has shifted attention towards forthcoming data on PPI inflation and retail sales, expected to be published on Thursday. These data points are anticipated to influence the Federal Reserve’s assessment of interest rates.
The data releases precede a Federal Reserve meeting scheduled for next week, where it is widely expected that the central bank will maintain interest rates at their current level and indicate no immediate plans for policy loosening.
Several Fed officials have cautioned that interest rate adjustments will largely depend on the path of inflation in the coming months.
Other metals
Other precious metals exhibited consolidation ahead of the upcoming data. Platinum futures declined by 0.4 percent to $942.45 per ounce, while silver futures stabilized at $25.170 per ounce.
Regarding copper, prices cooled down after reaching 11-month highs due to a rally fueled by reports that major Chinese copper smelters had collectively agreed to reduce production, although the extent of the planned cuts remains uncertain.
Doubts persist regarding whether copper prices can sustain their rapid increase, particularly considering the bleak economic outlook for China, the world’s largest copper importer.
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