Investing.com– Gold prices advanced in Asian trade on Monday, but remained well below recent record highs as persistent strength in the dollar weighed heavily on metal markets.
Anticipation of more cues on U.S. inflation and interest rates also kept investors heavily biased towards the dollar, although metal markets still saw some buying after steep losses on Friday.
rose 0.2% to $2,169.77 an ounce, while expiring in April rose 0.5% to $2,170.55 an ounce by 01:13 ET (05:13 GMT).
Gold nurses tumble from record highs, dollar strong
Bullion prices were trading well below record highs hit last week, where signals on interest rate cuts from the Federal Reserve spurred strong gains in the yellow metal.
But gold fell sharply from record highs towards the end of the week, as dovish signals from other central banks saw investors pivot largely into the dollar as the only high-yielding, low-risk currency.
The rose 0.4% on Monday to a one-month high. Strength in the dollar was also driven by anticipation of data- the Fed’s preferred inflation gauge- due later this week, as well as comments from a string of Fed officials through the week.
Other precious metals were a mixed bag on Monday following steep declines in the prior session. rose 0.6% to $913.40 an ounce, while fell 0.1% to $24.812 an ounce.
Copper prices rebound, but 11-month highs remain elusive
Among industrial metals, copper prices rebounded sharply on Monday after steep losses in the prior session. Friday’s losses also kept copper prices trading well below 11-month peaks hit last week.
on the London Metal Exchange rose 0.6% to $8,911.0 a ton, while rose 0.8% to $4.0315 a pound.
The red metal tumbled from 11-month highs last week after data on Friday suggested that global copper supplies may not be as tight as initially expected. Copper’s recent rally was driven chiefly by expectations of tighter supplies as major Chinese refiners signaled plans to cut production.
But Chinese data on Friday showed copper inventories in the country surged to four-year highs in recent months, indicating that supplies in the world’s biggest copper importer remained robust.
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