Home Investing News Gold prices hover above $2,150 ahead of Fed meeting; copper edges lower

Gold prices hover above $2,150 ahead of Fed meeting; copper edges lower


Gold prices hover above $2,150 ahead of Fed meeting; copper edges lower By Investing.com

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AuthorAmbar WarrickCommodities

Published Mar 19, 2024 01:52AM ET

© Reuters.

Investing.com– Gold prices fell slightly in Asian trade on Tuesday, but remained above key support levels as markets remained largely averse towards precious metals before a key Federal Reserve meeting this week.

Among industrial metals, copper prices inched lower, but remained in sight of 11-month highs after a stellar rally over the past three sessions.

Bullion prices recovered some lost ground this week, retaking the $2,150 an ounce support level on Monday as uncertainty over the Fed’s stance persisted. But the yellow metal also remained well below record highs hit earlier in March.

Spot gold fell 0.1% to $2,158.26 an ounce, while gold futures expiring in April fell 0.1% to $2,161.35 an ounce by 01:30 ET (05:30 GMT). 

Dollar strong ahead of Fed meeting, pressures gold 

Strength in the dollar was a key weight on gold prices, as anticipation of the Fed meeting and dovish signals from the Bank of Japan kept traders largely biased towards the greenback. 

The dollar index rose to a two-week high on Tuesday after clocking strong gains over the past two sessions.

The Fed is widely expected to keep interest rates steady at the conclusion of a two-day meeting on Wednesday. But markets feared any potentially hawkish signals from the central bank, particularly a dialing down in its interest rate cut forecasts, following hotter-than-expected inflation data for the past two months.

Higher-for-longer rates bode poorly for gold and other precious metals, given that high rates push up the opportunity cost of investing in the sector. 

Platinum futures fell 0.7% to $913.15 an ounce, while silver futures fell 0.3% to $25.192 an ounce. 

Copper prices edge lower, but remain close to recent peaks

Three-month copper futures on the London Metal Exchange fell 0.5% to $9,046.0 a ton, while one-month U.S. copper futures fell 0.6% to $4.1052 a pound. 

But the two instruments remained in sight of 11-month peaks hit on Monday, as the prospect of a deficit in Chinese refined copper supplies triggered a sharp melt-up in copper prices. 

The copper rally was further boosted by stronger-than-expected industrial production data from China, which is the world’s largest copper importer.

Gold prices hover above $2,150 ahead of Fed meeting; copper edges lower

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