Investing.com– Gold prices fell Tuesday as the U.S. currency and bond yields remained firm before a string of Federal Reserve speakers this week.
While the yellow metal marked a strong run-up over the past two weeks, it has struggled to make headway in recent sessions, especially as the and remained resilient despite signs of cooling U.S. economic activity.
Expectations that the Fed will keep rates higher for longer have kept investor appetite for gold limited, with recent and indicators showing that the central bank still needs to keep policy restrictive in the near-term.
Gold futures’ most-active on New York’s Comex settled down $14.50, or 0.7%, at $1,952.60 an ounce.
was down $11.20, or 0.6%, to $1,927.15 an ounce by 15:30 ET (19:30 GMT).
Fed speakers awaited as Sept meeting looms
Markets are now focused squarely on a slew of Fed speakers this week, who are expected to offer more cues on monetary policy before an later this month.
is set to speak on Wednesday, followed by on Thursday.
Fed open market committee members and are also set to speak on Thursday.
While a string of weak economic readings pushed up hopes that the Fed has limited room to keep raising interest rates, the central bank is still expected to , given recent signs of sticky inflation and steady labor market activity.
Higher rates bode poorly for gold prices, given that they push up the opportunity cost of holding the yellow metal.
The prospect of a soft landing for the U.S. economy this year has also dented the yellow metals’ safe haven appeal, although concerns over a Chinese and euro zone economic slowdown still provided some support.
Copper flat amid mixed China signals, trade data awaited
Among industrial metals, copper prices were flat on Tuesday, also coming under pressure from a steady dollar.
A private survey showed that China’s grew less than expected in August, offsetting some optimism over an earlier reading that showed some resilience in the .
New York-traded settled down 0.35 cents at $3.8485 a pound.
Concerns over slowing growth in China, the world’s largest copper importer, have largely dented prices this year, as the country grapples with a slowing post-COVID recovery. Focus this week is now on key from the country to gauge its appetite for copper imports.
Investors have also grown impatient with Beijing’s somewhat conservative approach to releasing more stimulus measures.
(Barani Krishnan contributed to this item)
(This article is generated through the syndicated feed sources, Financetin doesn’t own any part of this article)