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Gold prices experienced extended losses in Asian trade on Thursday, further retreating from recent record highs as renewed worries about high interest rates and diminished safe haven demand weighed on the yellow metal.
Industrial Metals Follow Suit
Industrial metals, including copper, also faced losses, with copper prices sharply declining from record highs amidst profit-taking and pressure from a stronger dollar. Despite this, copper prices stabilized somewhat during Asian trade.
Gold Price Movement
Spot gold fell by 0.3% to $2,372.38 an ounce, while gold futures for June delivery dropped by 0.8% to $2,375.15 an ounce. These declines pushed spot prices notably below the recent record high of $2,450 an ounce witnessed earlier in the week.
Fed Minutes Impact
The overnight bounce in the dollar, reaching a one-week high, exerted pressure on metal prices following the release of the Federal Reserve’s late-April meeting minutes. Concerns expressed by policymakers about persistent inflation and the possibility of further interest rate hikes contributed to market jitters.
Geopolitical Tensions and Safe Haven Demand
Despite the death of the Iranian President not escalating geopolitical tensions in the Middle East significantly, safe haven demand for gold remained subdued. This lack of significant geopolitical turmoil added to the downward pressure on gold prices.
Performance of Other Precious Metals
Platinum futures declined by 0.1% to $1,041.20 an ounce, while silver futures sank by 2.5% to $30.727 an ounce, reflecting the broader downward trend in precious metal prices.
Copper Market Dynamics
Benchmark copper futures on the London Metal Exchange experienced a 0.4% decline to $10,372.50 a ton, with one-month copper futures steadying at $4.8030 a pound. These declines followed a period of profit-taking and stabilization after copper reached record highs earlier in the week.
Investors are closely monitoring developments related to interest rates, inflation, and geopolitical tensions, which continue to influence market sentiment and precious metal prices. Additionally, concerns about China’s trade relations with the United States and the execution of recent stimulus measures add further uncertainty to market dynamics.
