Gold prices slide as safe haven plays favor yen; Copper losses deepen

Gold prices fell in Asian trade on Thursday, seeing little safe haven demand despite increasing risk-off sentiment as traders rode a sharp appreciation in the Japanese yen. 

A rout in broader commodity markets also raged on, with copper prices extended a sinking to a near four-month low amid persistent concerns over top importer China. Weak readings on manufacturing activity from the U.S., Germany and Japan also soured copper’s outlook. 

Spot gold slid 0.9% to $2,376.11 an ounce, while gold futures expiring in August tumbled 1.7% to $2,375.40 an ounce by 00:52 ET (04:52 GMT).  Gold prices retreat as safe haven plays, rate hike bets favor yen 

The yellow metal saw little safe haven demand even as global markets experienced a sharp drop in risk appetite, with traders pivoting into the Japanese yen. The yen’s USDJPY pair, which gauges the number of yen needed to buy one dollar, sank to an over two-month low on Thursday. 

The yen benefited from an unwinding in short positions over the past week, following suspected currency market intervention by Tokyo. But speculation over a potential interest rate hike by the Bank of Japan next week also benefited the yen, especially as recent data signaled some resilience in the Japanese economy. 

Gold and metal markets took little advantage of a drop in the dollar, which retreated before a slew of key U.S. economic readings in the coming days. Gross domestic product data for the second quarter is due later on Thursday, while PCE price index data- the Federal Reserve’s preferred inflation gauge- is due on Friday. 

Other precious metals also retreated. Platinum futures slid 1.1% to $949.60 an ounce, while silver futures tumbled 4.2% to $28.098 an ounce, unwinding a bulk of their recent rally. Copper losses deepen amid demand jitters 

Among industrial metals, copper prices fell further on Thursday, facing increased selling pressure amid concerns over a slowdown in global demand. 

Benchmark copper futures on the London Metal Exchange slid 1.6% to $8,960.50 a tonne- breaking below $9,000 for the first time since early-April. One-month copper futures fell 0.6% to $4.0540 a pound.

Both contracts were nursing steep losses in recent sessions, amid growing concerns over demand in top importer China, following a string of underwhelming economic readings from the country.

Concerns over a demand slowdown were furthered by weak manufacturing activity data from the U.S., Japan and Germany, which showed industrial activity was on the backfoot.

Source: Investing.com

Останні публікації
Factbox-How investors buy gold and what drives the market
20.09.2024 - 16:00
Oil prices drift lower, but set for weekly gains after hefty Fed cut
20.09.2024 - 16:00
Morning Bid: Taking stock after Fed glow, Japan/China hold
20.09.2024 - 14:00
European Commission president says she has arrived in Kyiv to discuss support for Ukraine
20.09.2024 - 10:00
Analysis-Global refiners face profit slump as new plants come online
20.09.2024 - 09:00
Gold prices rise after bumper Fed rate cut; copper upbeat on China stimulus
20.09.2024 - 09:00
Oil prices drift lower but set for positive week after rate cut
20.09.2024 - 05:00
Oil prices set to end week higher after US rate cut
20.09.2024 - 04:00
USTR to take comments on tariff hikes for Chinese polysilicon, wafers, tungsten
20.09.2024 - 02:00
Oil ends more than 1% higher on US rate cut, declining crude stockpiles
20.09.2024 - 00:00
Oil prices rise on easing demand worries after jumbo Fed rate cut
19.09.2024 - 22:00
Oil prices rise 2% after US rate cut
19.09.2024 - 22:00
Oil prices rise 2% on US interest rate cut
19.09.2024 - 20:00
Gold’s strong rally likely to continue as interest rates are cut, says UBS
19.09.2024 - 17:00
Oil prices rise after jobless claims data, bumper Fed cut
19.09.2024 - 17:00

© Analytic DC. All Rights Reserved.

new
Аналіз трейдера Аналіз трейдера за 20.09.24
Ласкаво просимо в чат підтримки!
*
*

Ваш запит успішно надіслано!
Скоро з вами зв′яжуться.