Gold Prices Rise Near Record Highs on Dollar Rebound, Safe Haven Demand
Gold prices in Asia rose on Thursday, staying close to record highs as the dollar rebounded ahead of key inflation data that will impact interest rate cuts. Safe haven demand also supported bullion prices, particularly after disappointing earnings from NVIDIA Corporation rattled global equity markets.
Spot gold rose 0.4% to $2,515.76 an ounce, while gold futures for December delivery also increased by 0.4% to $2,515.91 an ounce.
Gold remains near record highs as investors await inflation and GDP data. The yellow metal has been well-supported amid expectations of a Federal Reserve interest rate cut in September, which is favorable for gold. Safe haven demand was also boosted by Middle East tensions and uncertainty in Libya’s oil production.
The market focus is on upcoming U.S. economic indicators, with revised GDP data scheduled for Thursday and inflation data on Friday. Expectations for rate cuts are split between a 25 or 50 basis point cut in September.
In addition, copper prices rose slightly on Thursday, but sentiment towards China remained weak due to concerns about a potential trade war. Despite this, bets on improving global copper demand have been fueled by expectations of lower interest rates and better economic growth.
In conclusion, gold prices are influenced by the dollar’s performance, safe haven demand, and upcoming economic data releases. The outlook for interest rate cuts and global economic conditions will continue to impact gold and copper prices in the near future.