Investing.com– The price of gold fell to its lowest level in nearly two months on Thursday, mainly due to a stronger dollar after data showed that US inflation remained stable, while that the anticipation of new measures from the Federal Reserve also weighed on the market.
Among industrial metals, the price of copper fell to a three-month low on lingering concerns over top importer China, whose recent round of stimulus measures have been largely disappointing. The prospect of an increase in American customs duties on China, under a second presidency of Donald Trump, also weighed.
But a stronger dollar remained a key weight in metals markets, with the greenback hitting a one-year high due to uncertainty over the long-term outlook for interest rates.
fell 0.5% to $2,560.74 an ounce, while December expiry slipped 0.8% to $2,565.25 an ounce as of 7:10 a.m. Spot gold fell more than 8% from October’s record high.
Gold put under pressure by rising dollar following CPI data
Losses in the yellow metal followed a sharp rise in and Treasury yields this week. The dollar’s rise intensified after data on Wednesday showed US inflation remained stable in October.
As traders increased their bets on a December rate cut by the Fed, the longer-term outlook for rates has become more uncertain.
Markets have also been pricing in a potential pick-up in inflation due to the Trump administration’s expansionary and protectionist policies, which are expected to keep long-term rates relatively high.
On Thursday, attention was focused on the upcoming speech of the . Last week, Powell reiterated the bank’s data-driven approach to further easing, after cutting rates by 25 basis points.
Other precious metals were also negative on Thursday. Gold fell 0.4% to $938.15 an ounce, while oil fell 1.4% to $30.233 an ounce.
Copper falls to three-month low on China woes
Among industrial metals, the price of copper extended recent declines, hitting a three-month low, as negative sentiment regarding major importer China remains.
The benchmark on the London Metal Exchange fell 0.9% to $8,940.50 a tonne, while the December contract fell 0.8% to $4.3060 a pound, with both contracts hitting their levels. the weakest since August.
China’s recent round of fiscal measures has largely disappointed traders who were hoping for more targeted measures to support private spending and the real estate market. The prospect of increased tariffs under Trump has also clouded China’s outlook.
Beijing is expected to present new stimulus measures at two key policy meetings in December.
This week, the focus will be on Chinese data from and, due Friday, for further clues on the economy.
