China optimism buoys copper, gold is weakened amid recession uncertainty
By Ambar Warrick
Investing.com — Gold prices have recovered from a two-day losing streak, but there is growing uncertainty over the course of U.S. monetary policies and a possible recession. Meanwhile, copper prices are steady due to increasing optimism about a Chinese economic recovery.
U.S. retail sales industrial production Data for December showed data that was weaker than expected Wednesday. This raises concerns about a wider economic slowdown in the country, which is struggling with high inflation and tight monetary policies.
The Federal Reserve has released a report. beige bookAccording to, there will be little economic growth over the next few months even though price pressures are decreasing. Producer price inflation December saw a decrease in sales than was expected.
Still, overnight comments from several Fed members, including Loretta Mester and James Bullard, called for more interest rate hikes, given that inflation is still well above the central bank’s annual 2% target. They predicted that U.S. borrowing prices would peak around 5%. However most members supported a slower pace.
Spot gold rose 0.2%, to $1.907.60 an an ounce. Gold futures rose 0.1%, to $1.909.15 an an ounce at 19:16 ET (00.16 GMT). After touching an eight-month high earlier in the week, the yellow metal fell 0.6% over the past two sessions.
Data from the UK And the Eurozone Inflation remained high in both regions, which could lead to more rate increases by the respective central banks. This could impact bullion price.
The rising fears of a global recession and tighter inflation policies in many countries led to the yellow metal’s prices climbing. The strong support level for gold at $1,900 an troy ounce was also evident.
Other precious metals remained within a narrow range on Thursday. While silver futures increased 0.1% and platinum futures fell 0.2%, both metals still suffered severe losses this week.
Copper prices made more gains this week than any other industrial metals as optimism over China’s economic recovery helped to overcome fears of a possible recession.
Copper futures of high-grade quality were steady at $4.2260 per pound, just below a six-month high.
Gita, the deputy managing director at the International Monetary Fund, stated to Reuters that China may see a rapid economic recovery after it has relaxed all anti-COVID restrictions since late-2022.
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