Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Gold treads water as Fed fears persist, more data awaited

Published Aug 28, 2023 12:49AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
Gold
+0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
+0.50%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- Gold prices moved little on Monday as markets digested hawkish yet reiterative comments from the Federal Reserve, with a slew of major economic readings on tap this week. 

Fed Chair Jerome Powell had warned on Friday that U.S. interest rates could still rise further to curb sticky inflation - a scenario that bodes poorly for gold.

But losses in the yellow metal were somewhat limited, given that prices had tumbled to five-month lows earlier in August.

Gold has marked a steady recovery from recent lows, although further strength in the yellow metal remains in question due to a hawkish outlook for U.S. rates. Strength in the dollar, which was trading close to three-month highs, also weighed on metal markets.

Spot gold was flat at $1,915.11 an ounce, while gold futures expiring in December rose 0.1% to $1,942.50 an ounce by 00:33 ET (04:33 GMT). 

Powell also reiterated on Friday that the Fed was likely to keep U.S. interest rates higher for longer, with recent resilience in the economy giving the central bank more headroom to do so. 

U.S. economic data on tap this week 

Markets are now awaiting a slew of economic readings from the world’s largest economy this week, including second-quarter GDP data, PCE inflation, and nonfarm payrolls.

An earlier reading on GPD showed that the U.S. economy grew far more than expected in the second quarter, indicating that activity had not cooled as much as the Fed was initially expecting.

A reading on the Fed’s preferred inflation metric, personal consumption expenditures, is also due this week, and is expected to show that inflation remained sticky through July.

Nonfarm payrolls data for August is also due this week, and is set to show continued resilience in the U.S. labor market.

Strength in the economy, coupled with sticky inflation and a robust jobs market, gives the Fed more headroom to keep raising interest rates, or even hold them higher for longer. Such a scenario bodes poorly for gold, given that higher rates push up the opportunity cost of holding non-yielding assets.

Copper buoyed by China optimism, PMIs awaited 

Among industrial metals, copper prices rose on Monday as more stimulus measures from China helped improve sentiment. 

Copper futures rose 0.4% to $3.8042 a pound.

China had over the weekend unveiled more measures aimed at supporting its stock and property markets, which helped brew some optimism over an eventual economic recovery in the country.

Focus is now on a string of purchasing managers’ index (PMI) readings from the world’s largest copper importer, due on Thursday and Friday. Chinese manufacturing activity is expected to have contracted for a third straight month in August. 

 
 
 
Gold treads water as Fed fears persist, more data awaited
 

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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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.
Comments (2)
Tom Michaels
Tom Michaels Aug 28, 2023 3:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The fed is a total scam. Mega manipulators.
Gandalf Gray
Wacio Aug 28, 2023 3:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Da. It's exactly what they were intended to do from inception.
Otis Grant
Otis Grant Aug 28, 2023 6:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What is everyone so afraid of the fed for? Does one more 25bp hike even matter its nothing
 
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