Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Gold hovers around $1,750, copper muted as hawkish Fed fears persist

Commodities Nov 20, 2022 07:42PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
XAU/USD
+0.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
+0.43%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
+0.77%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DXY
+0.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick

Investing.com-- Gold prices moved little on Monday but hovered around key support levels as markets sought more clarity on the path of U.S. monetary policy in the coming months, while copper prices were muted as more COVID disruptions in China appeared set to dent demand.

The minutes of the Federal Reserve’s previous meeting are set to release on Thursday, and are likely to provide more insight into how the central bank intends to proceed with raising interest rates.

While markets are pricing in the possibility of a relatively smaller rate hike in December after inflation eased more than expected in recent months, recent comments from Fed members suggested that interest rates could keep rising for longer than expected.

This outlook is positive for the dollar and Treasury yields, and is likely to weigh on metal markets. The greenback appeared to have found a bottom after recent losses, and rose 0.1% to 107 on Monday.

Spot gold rose 0.1% to $1,752.81 an ounce, while gold futures crept up to $1,754.90 an ounce by 19:05 ET (00:05 GMT). Both instruments sank nearly 2% last week after Fed members warned of higher interest rates.

A series of sharp rate hikes by the Fed weighed heavily on metal markets this year, as rising yields dented the appeal of non-yielding assets such as gold.

While metal markets rallied earlier this month on signs of easing U.S. inflation, they are expected to remain pressured in the coming months, given that inflation is still trending well above the Fed’s annual 2% target.

Among industrial metals, copper prices moved little on Monday after logging bruising losses last week on concerns over major importer China.

Copper futures were steady around $3.6405 a pound after tumbling 7.2% last week- their worst week since late-August.

China locked down more parts of the country, as it grapples with its worst COVID outbreak in seven months. Economic growth in the country slowed drastically this year under the country’s strict zero-COVID policy, which saw the imposition of a slew of disruptive lockdowns.

This weighed on the country’s appetite for commodities.

Growing fears of a global recession also dampened the outlook for copper, despite signs of tightening supply.

Gold hovers around $1,750, copper muted as hawkish Fed fears persist
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email