Gold prices muted; copper weakens

Gold prices steadied in Asian trade on Monday as traders awaited more cues on U.S. interest rates from upcoming Federal Reserve speakers this week, while expectations of a November rate cut remained in focus.

In the industrial metals market, copper prices dipped due to underwhelming signals on fiscal stimulus from top importer China, combined with weak inflation data that added to concerns about the country’s economic health.

Gold remained near its September high, supported by the expectation of an eventual decline in U.S. interest rates, which continued to boost precious metals. Ongoing concerns over the Middle East conflict also sustained demand for safe-haven assets.

Spot gold fell 0.1% to $2,655.82 an ounce, while gold futures for December delivery dropped 0.1% to $2,672.60 an ounce by 23:53 ET (03:53 GMT).

Gold Holds Steady Amid Anticipation of More Fed Signals
Gold prices hovered near recent highs, though upward momentum was tempered by expectations of a slower pace of interest rate cuts by the Federal Reserve.

This week’s focus is on speeches by several Federal Reserve officials, starting on Monday. The Fed is widely expected to implement a smaller 25 basis-point rate cut in November, particularly following stronger-than-expected inflation and labor market data.

However, an eventual decline in U.S. interest rates is still anticipated to favor gold, as lower rates reduce the opportunity cost of holding non-yielding assets.

Safe-haven demand for gold also remained strong amid fears of potential escalation in the Middle East, particularly concerns over disruptions to oil infrastructure in the region.

Other precious metals saw declines on Monday. Platinum futures dropped 0.9% to $985.45 an ounce, while silver futures fell 0.8% to $31.495 an ounce.

Copper Falls as China’s Stimulus Measures Fall Short
Benchmark copper futures on the London Metal Exchange declined 0.6% to $9,749.50 per ton, while December copper futures fell 0.8% to $4.4505 per pound.

Weak economic signals from China, the world’s largest copper importer, weighed heavily on prices. Over the weekend, China’s finance ministry announced a range of fiscal stimulus measures aimed at supporting economic growth. However, the absence of crucial details, particularly regarding the size and timing of these measures, left investors disappointed.

Additionally, inflation data from China fell short of expectations. Consumer inflation unexpectedly eased in September, while producer inflation shrank for the 23rd consecutive month, further contributing to concerns about the country’s economic outlook.