Gold prices muted before inflation data, copper sinks on Zambia discovery By
2024-02-12 14:20:10

-- Gold prices moved little in holiday-thinned Asian trade on Monday, with the yellow metal keeping to a trading range established over the past week as traders sought more cues from upcoming U.S. inflation data.

Among industrial metals, copper prices hit a near three-month low after KoBold Metals- a startup backed by Microsoft (NASDAQ:) founder Bill Gates, found a large copper deposit in Zambia that could form a major copper mine.

Waning expectations of early interest rate cuts by the Federal Reserve saw gold fall back into a $2,000 to $2,050 trading range in February, as markets began steadily pricing out chances of a rate cut in March and May. 

A dearth of direct cues over the past week also gave gold few cues, with traders now looking to the upcoming consumer price index (CPI) data as the next big signal. 

fell 0.1% to $2,023.48 an ounce, while expiring in April fell 0.1% to $2,037.20 an ounce by 00:07 ET (05:07 GMT). Trading volumes in the two were muted on account of market holidays in China, Hong Kong, South Korea and Japan. 

CPI data, Fed signals in focus 

Gold is expected to see little action ahead of U.S. on Tuesday. While the reading is expected to show that inflation eased further in January, price pressures are still expected to remain well above the Fed’s 2% annual target, giving the central bank more impetus to keep interest rates higher for longer. 

Along with the inflation data, a sting of Fed officials, including , and are on tap this week.

Fed officials are expected to reiterate recent comments that the central bank is in no hurry to begin trimming interest rates. This notion had sparked steep losses in gold earlier in February, given that higher rates push up the opportunity cost of investing in the yellow metal.

The also remained in sight of a recent three-month high, keeping gold prices under pressure.

Still, gold managed to hold above the $2,000 an ounce support, although analysts cautioned that the level may be tested in the coming days. 

Copper sinks on discovery of large deposit in Zambia 

Copper prices fell on Monday, extending losses from the prior session on fears of a potential increase in global supplies.

expiring in March fell 0.4% to $3.6727 a pound- their weakest level since mid-November. 

KoBold Metals, a start-up backed by Microsoft founder Bill Gates, said it had discovered a huge copper deposit in Zambia, which could potentially form one of the largest mines in the world.

Zambian President Hakainde Hichilema said that the deposit- found in the Mingomba Project- could produce between 500 to 600,000 metric tons of copper when operational. In comparison, Chile's Escondida Mine- which is considered the world's largest copper mine by production, produced about 1 million tons of copper in 2022.

The discovery points to a potential increase in copper supplies over the coming years- heralding more pressure on prices of the red metal, which usually benefit from tighter market conditions.

Copper was already nursing steep losses so far in 2024 amid persistent concerns over slowing demand in top importer China.

The content of this article does not represent the views of fxgecko website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Related News

您正在访问的是FxGecko网站。 FxGecko互联网及其移动端产品是中国香港特别行政区成立的Hitorank Co.,LIMITED旗下运营和管理的一款面向全球发行的企业资讯査询工具。

您的IP为 中国大陆地区,抱歉的通知您,不能为您提供查询服务,还请谅解。请遵守当地地法律。