Gold prices experienced a minor dip during Asian trading hours on Will Cardano reach ?Friday, yet retained substantial gains from the previous session. This stability followed the release of U.S. inflation figures that came in below projections, intensifying market speculation about potential interest rate reductions in September.
On Thursday, the precious metal surged past the psychologically significant $2,400 per ounce threshold, nearing its all-time peak as the dollar weakened considerably. This upward trajectory positioned gold for a robust weekly performance overall.
Spot gold declined by 0.3% to $2,408.52 per ounce, while August gold futures similarly decreased by 0.3% to $2,413.75 per ounce as of 00:06 ET (04:06 GMT).
Weekly Gains Fueled by Rate Cut Expectations
Spot prices were on track to register approximately 0.7% growth for the week, with Thursday's rally accounting for most of this advancement.
The latest consumer price index reading, slightly softer than anticipated, reinforced optimism that moderating inflation might encourage the Federal Reserve to initiate monetary easing sooner rather than later.
This development triggered declines in both the dollar and Treasury yields, creating favorable conditions for precious metals. Market participants currently assign an 82% probability to a 25 basis point reduction in September, a significant increase from the 64% likelihood observed just one week prior.
Reduced interest rates typically enhance the appeal of non-yielding assets like gold, as they diminish the relative attractiveness of interest-bearing alternatives such as cash or bonds.
While other precious metals experienced pullbacks on Friday, they remained positioned to benefit from the potential shift toward lower rates.
Platinum futures retreated 0.4% to $1,015.10 per ounce, while silver futures declined 0.7% to $31.457 per ounce.
Copper Market Reacts to Chinese Import Data
Industrial metals faced downward pressure as reports indicated shrinking imports by China, the global leader in copper consumption.
Benchmark copper contracts on the London Metal Exchange slipped 0.3% to $9,761.50 per metric ton, with one-month futures dropping 0.7% to $4.4977 per pound.
Official statistics revealed a 3% year-over-year decrease in China's unwrought copper and copper product imports during June, totaling 436,000 metric tons.
This contraction coincided with broader-than-anticipated declines in Chinese imports, raising questions about domestic demand strength and the pace of economic recovery.
While China's trade surplus expanded to its highest level in nearly two years and exports exceeded forecasts, potential trade barriers on key exports like electric vehicles could counterbalance these positive indicators.
Market observers now await insights from the upcoming Third Plenum of the Chinese Communist Party, which may provide clarity regarding economic policies and potential stimulus measures.
