Gold prices steady amid rate, Trump uncertainty; copper up on strong China data

Gold prices steadied near a one-month high in Asian trade on Friday, as uncertainty over U.S. interest rates and policy under incoming President Donald Trump spurred some haven demand. 

Among industrial metals, copper prices rose tracking positive gross domestic product data from top importer China, as recent stimulus measures appeared to be bearing fruit.

Metal markets benefited from weakness in the dollar, which was set to break a six-week winning streak following soft inflation data. But signs of strength in consumer spending and the labor market still kept the greenback relatively well bid. 

Gold benefited from weakness in the dollar, with spot prices steadying at $2,715.04 an ounce by 00:00 ET (05:00 GMT). Gold futures fell 0.2% to $2,745.26 an ounce, although both indicators were close to their strongest level since mid-December. Rate uncertainty, Trump jitters fuel some gold demand 

The yellow metal saw some haven demand this week as traders speculated over the path of U.S. interest rates, amid mixed signals. While inflation did read softer for December, it still remained relatively high.

Retail sales and jobless claims data also signaled resilience in the U.S. economy, which gives the Federal Reserve less impetus to cut interest rates quickly.

Markets were also on edge over just what Trump’s policies will entail for inflation and the economy. Trump- who takes office from Monday- has vowed to impose steep trade tariffs on several countries, which could underpin inflation in the long term.

But gold’s overall gains were still limited, as the signing of a U.S.-brokered ceasefire between Israel and Hamas pointed to lower geopolitical tensions in the Middle East. This sapped some haven demand for gold.

Other precious metals were less upbeat than gold this week. Platinum futures rose 0.3% to $943.85 an ounce, while silver futures fell 0.5% to $31.555 an ounce.  Copper upbeat on positive Chinese data 

Benchmark copper futures on the London Metal Exchange rose 0.2% to $9,268.50 a ton, while March copper futures rose 0.6% to $4.4607 a pound. 

China’s economy grew more than expected in the fourth quarter, with GDP at 5.4%. This brought China’s annual GDP up to 5% for 2024, keeping it in line with Beijing’s target.

Strength in the Chinese economy was driven chiefly by a string of aggressive stimulus measures, with Beijing seen gearing up to provide more support in the face of U.S. trade headwinds. 

Copper prices were sitting on strong gains over the past two weeks, amid bets that Chinese demand will pick up on more stimulus measures. China’s copper imports also hit a 13-month high in December.

Source: Investing.com