Investing.com– Gold prices fell slightly in Asian trade on Wednesday, extending losses from the prior session as traders remained largely biased towards the dollar in anticipation of key U.S. inflation data.
The yellow metal also stuck to a trading range- around the low $2,300 an ounce range- established through most of June, as the prospect of high U.S. rates clouded its price outlook.
Spot gold fell 0.1% to $2,317.02 an ounce, while gold futures expiring in August fell 0.1% to $2,328.40 an ounce by 00:17 ET (04:17 GMT).
Gold prices rangebound with PCE inflation on tap
The yellow metal trended lower this week, with trading volumes remaining limited as markets awaited PCE price index inflation data due this week.
The reading, which is due on Friday, is the Federal Reserve’s preferred inflation gauge, and is likely to factor into the central bank’s outlook on interest rates.
Recent signs of resilience in the U.S. economy- from strong purchasing managers index data and consumer confidence readings- sparked fears that the Fed will have enough headroom to keep rates high for longer. Several Fed officials echoed this notion this week.
A revised reading on first quarter gross domestic product is also set to offer more cues on the U.S. economy this week.
Other precious metals rose on Wednesday, although gains were muted by concerns that high-for-longer interest rates will dent their prices in the coming months. Strength in the dollar, which remained close to two-month highs, also weighed on metal prices.
Platinum futures rose 0.6% to $1,005.25 an ounce, while silver futures rose 0.2% to $29.258 an ounce.
Copper prices muted amid China caution
Among industrial metals, copper prices traded sideways on Wednesday and were nursing steep losses through June amid growing caution over top importer China.
Benchmark copper futures on the London Metal Exchange fell 0.1% to $9,561.50 a tonne, while one-month copper futures steadied at $4.3695 a pound.
The prospect of a trade war between China and the West dampened sentiment towards copper, especially following the introduction of steep import tariffs on Chinese electric vehicles in the European Union and the U.S.
The tariffs also herald more headwinds for the EV industry, which is pegged to be a major source of copper demand in the coming years.
