Gold stagnates ahead of additional Fed hints
While markets anticipated additional indications on the U.S. economy and monetary policy on Thursday, gold prices barely moved in Asian trade, lingering from significant losses this week. Meanwhile, copper prices recovered from a five-month low on some deteriorating mood.
Spot gold steadied at $1.982.18 per ounce, meanwhile gold futures traded mute at $1,985.15 per ounce.
For the first time in two weeks, the price of gold fell below $2,000 per ounce as hawkish Federal Reserve signals and waning concerns about a U.S. debt default caused speculators to leave the safe haven.
The next two days' speeches by Fed officials will continue to be the main focus, especially that of Chair Jerome Powell on Friday. Numerous officials gave warnings that U.S. inflation was still too high and would prompt the central bank to tighten policy further, putting extra tense on gold.
The Biden administration provided encouraging hints on lifting the U.S. debt ceiling, indicating that a compromise with Republican lawmakers may be reached by this week. This lifted market confidence.