In the latest market session, gold’s movement was modest as investors held back on significant positions, awaiting crucial updates on U.S. inflation and Federal Reserve policies. This cautious stance was further influenced by the dollar’s recent ascendancy, which exerted additional pressure on the precious metal.

Conversely, copper experienced a notable retreat from its 11-month zenith, prompted by profit-taking activities and a shift in sentiment regarding China, the world’s primary copper importer. The anticipation surrounding major economic announcements has rendered the trading atmosphere for metals more speculative.

Gold hovered at $2,171.90 an ounce, showing little change, while futures for April edged down by 0.2% to $2,172.45 an ounce, as market participants geared up for the release of the Personal Consumption Expenditures (PCE) price index. This data, scheduled for Friday, is critically eyed for insights into the Fed’s interest rate trajectory.

The metal’s outlook remains under scrutiny, especially with inflation data potentially influencing the timing of the Federal Reserve’s planned rate cuts, previously indicated at 75 basis points for the upcoming year. Upcoming remarks from Fed Chair Jerome Powell and FOMC member Mary Daly are eagerly awaited for further clarity.

Other precious metals also faced declines, with platinum futures dipping 0.2% to $914.60 an ounce and silver futures down 0.4% to $24.802 an ounce.

Copper’s pullback was evident in both the London Metal Exchange and U.S. futures, with a 0.3% and 0.4% drop respectively. The adjustment comes in the wake of Chinese inventory data revealing substantial stockpiles, tempering expectations set by signals of production cuts from major refiners aimed at tightening global supplies.

Market sentiment towards China has taken a cautious turn, with investors eager for further stimulus measures to invigorate the sluggish economy, a factor that could have significant ramifications for global metal markets.

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