Although gold prices were expected to slightly increase this
week due to a cautious view after the U.S. Federal Reserve's hawkish stance,
they remained mostly flat in Asian trade on Friday amid light year-end trading.
While gold futures expiring in February slipped 0.2% to
$2,649.91 an ounce by 00:20 ET (05:20 GMT), spot gold remained mostly stable at
$2,633.40 per ounce.
Since many institutional traders and market players close
their accounts before the holidays, gold trading usually experiences low
volumes and muted prices around the end of the year.
Furthermore, there are usually fewer key policy choices and economic data
releases around year's end, which lessens the catalysts for notable market
volatility.
The yellow metal was set to edge up 0.3% for the week after
losing more than 1% in the previous one. A strong dollar after the Fed’s
hawkish shift last week has continued to put downward pressure on bullion.
The strong dollar is putting pressure on gold.
The US Dollar Index held close to a two-year high it reached
last week and was little higher in Asian trade on Friday.
Gold prices are frequently impacted by a higher dollar since
it increases the cost of the yellow metal for purchasers who use other
currencies.
When the Fed policy meeting revealed only two additional rate cuts in 2025,
instead of the four previously anticipated, gold prices plummeted.
Gold is under downward pressure from higher interest rates,
which makes it more appealing than interest-bearing securities like bonds.
On Friday, other precious metals were equally quiet. Silver
futures held stable at $30.380 an ounce, while platinum futures remained
unchanged at $954.50 an ounce.
News of a concentrate scarcity causes copper to rise,
although strong dollar cap gains
China's top copper smelters have issued lower processing
charge estimates for the first quarter of 2025 compared to current quarter,
reflecting a continued shortage of copper concentrates, according to a Reuters
report, which caused copper prices to rise among industrial metals.
The China Smelters Purchase Team decided on revised copper
concentrate treatment and refining charges at a meeting in Shanghai. The new
rates are $25 per metric ton and 2.5 cents per pound, which is 28.6% less than
the fourth-quarter guidance of $35 per ton and 3.5 cents per pound.
As a strong dollar weighed in, the red metal was unable to completely profit
from this news.
February Copper Futures decreased 0.1% to $4.1360 a pound,
while benchmark copper futures on the London Metal Exchange increased 0.5% to
$9,008.50 a ton.
0 Comments