Gold prices fell to near two-month lows on Thursday, pressured mainly by a stronger dollar after U.S. inflation data showed persistent price pressures. Investors are also awaiting further signals from the Federal Reserve, adding to the caution in markets.
In industrial metals, copper prices dropped to a three-month low due to ongoing concerns over demand from China, where recent stimulus measures have disappointed. The potential for higher U.S. trade tariffs on China under a possible second Trump presidency further weighed on sentiment.
A stronger dollar remained a key factor across metal markets, with the greenback reaching a one-year high amid uncertainty about the long-term interest rate outlook.
Spot gold dipped 0.5% to $2,560.74 per ounce, while December gold futures declined 0.8% to $2,565.25 per ounce by 23:41 ET. Spot gold is down more than 8% from its record high in October.
Gold pressured by dollar strength on persistent inflation
Gold’s losses were linked to the dollar’s sharp rise, supported by Treasury yields after data showed the U.S. Consumer Price Index (CPI) held steady in October.
Despite expectations for a rate cut in December, the longer-term rate outlook remains uncertain. Markets are also preparing for potential inflationary pressures from a possible Trump administration’s expansionary and protectionist policies, which could keep rates high over the long term.
Thursday’s attention was on an upcoming address from Fed Chair Jerome Powell, who recently emphasized the Fed’s data-dependent stance on rate adjustments following a 25-basis-point cut.
Other precious metals also slipped on Thursday. Platinum futures dropped 0.4% to $938.15 per ounce, while silver futures fell 1.4% to $30.23 per ounce.
Copper dips on China concerns
In industrial metals, copper continued its decline, reaching a three-month low on persistent worries about China’s economic outlook.
Benchmark copper futures on the London Metal Exchange decreased by 0.9% to $8,940.50 per ton, while December copper futures slid 0.8% to $4.3060 per pound, both hitting their lowest levels since August.
China’s recent economic measures fell short of market expectations for more targeted support, and concerns over potential tariffs under Trump added further pressure.
More clarity is expected as China approaches two major political meetings in December. Market focus this week is on upcoming Chinese industrial production and retail sales data, scheduled for release on Friday, for additional economic insights.
