© Reuters.
Investing.com– Gold prices rose slightly on Monday, recovering slightly after steep losses in the past week, while copper prices moved little before a slew of key U.S. and Chinese economic readings in the coming days.
Rising , driven by concerns over higher interest rates and a U.S. ratings downgrade, weighed on gold prices in recent sessions, as did a recovery in the .
While the yellow metal saw some relief on Friday, following weaker-than-expected data, it still closed the week about 1% lower- its worst performance in over a month.
rose 0.1% to $1,945.03 an ounce, while expiring in December rose 0.2% to $1,979.60 an ounce by 20:46 ET (00:46 GMT).
U.S. inflation awaited as yields spike
Metal markets were now squarely focused on U.S. inflation data due this Thursday, for more cues on the world’s largest economy.
Inflation is expected to have picked up again after a sharp decline in June- a scenario that could push up expectations of more interest rate hikes from the Federal Reserve.
Gold is expected to retreat further on a strong inflation reading, while the dollar is set to appreciate.
The prospect of higher-for-longer U.S. interest rates has weighed heavily on the yellow metal in recent weeks, with traders preferring the dollar even as Fitch downgraded the U.S. sovereign rating.
The Fitch downgrade also triggered sharp increases in U.S. Treasury yields, which pressured non-yielding assets such as gold.
Other precious metals were somewhat mixed on Monday, but were also nursing steep losses from the past week. rose 0.4%, while fell 0.2%.
Copper muted ahead of more China cues
Copper prices fell slightly on Monday, with focus turning to several upcoming Chinese economic indicators this week.
fell 0.1% to $3.8500 a pound.
The world’s largest copper importer is set to release and later this week, with both readings set to offer more cues on a slowing economic recovery in the country.
While Chinese copper imports have remained steady this year, worsening economic conditions in the country have pushed up concerns over an eventual deterioration in demand.
Data released last week also showed that the economy marked a weak start to the third quarter.
Investing.com
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