Gold prices in sight of record highs; copper rebounds on China cues
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Gold prices steadied in Asian trade, sitting near record high as traders bought into the yellow metal ahead of more cues on U.S. inflation and interest rates. Copper prices rebounded from recent losses, moving back towards 11-month peaks after reports showed that Chinese copper smelters were proposing output cuts. Gold prices steadied at $2,195.34 an ounce, while expiring in April steadied at $2,215.80 an ounce. Spot prices were just below a record high of $2,222.90 an ounce hit last week. Focus was now squarely on PCE price index data- the Fed’s preferred inflation gauge- which is due on Friday. Any signs of cooling inflation are likely to trigger strong gains in metal markets, given that they increase the chances of early interest rate cuts. Along with the PCE data, separate addresses from Fed Chair Jerome Powell and FOMC member Mary Daly are also due on Friday. Any signals from the two on interest rate cuts will be closely watched, after other Fed officials struck a somewhat hawkish tone this week. Three-month copper futures on the London Metal Exchange rose 0.5% to $8,913.0 a ton, while one-month U.S. copper futures rose 0.4% to $4.0303 a pound. Major Chinese copper smelters were considering output cuts, and had also set no guidance for copper prices in the second quarter. Reports of Chinese production cuts, which herald tighter markets for refined copper, had triggered sharp gains in copper prices earlier in March, putting them at 11-month highs. But these gains were offset by data showing Chinese copper inventories remained robust, which in turn suggested that markets may not be as tight as initially expected.

#Gold #Copper #China #Inflation #InterestRates

https://www.investing.com/news/commodities-news/gold-prices-in-sight-of-record-highs-copper-rebounds-on-china-cues-3356109