Investing.com – Gold prices were slightly higher in Asian markets today. This is as traders await further guidance on U.S. interest rates. Based on Federal Reserve Chairman Jerome Powell's testimony and inflation data this week
But gold is still hovering near a one-month high. It’s at the point where it could break through $2,400 an ounce again. This comes amid growing confidence that the Federal Reserve will start cutting interest rates in September. Commodity prices in general have also benefited from the weaker dollar. This has reached its lowest level in nearly a month.
Those expiring in August were down 0.3% at $2,384.47 an ounce, while those expiring in August were down 0.2% at $2,392.55 an ounce at 00:33 ET (04:33 GMT).
Gold gained some ground on bets on interest rate cuts.
Gold prices have risen sharply in the past week. Gold has risen from its lows of 2,300 points as weak labor market data raised hopes for interest rate cuts, and the weak data on Friday was also seen as a major factor in gold’s gains.
Gold will benefit from lower interest rates. This is expected to increase liquidity and reduce the attractiveness of the dollar and government bonds.
The tool now shows investors a greater than 72% chance of the Fed cutting rates by 25 basis points in September, up from 59% last week.
Market focus this week has been on further guidance on the U.S. economy and monetary policy as the Fed prepares to deliver a two-day statement before the Senate and House of Representatives. This could reveal more about the Fed’s plans for interest rates.
Inflation data will be released this week and is likely to be a major factor in the central bank's view on interest rates.
Other precious metals were lower on the day but held onto last week's gains, down 0.6% to $1,039.25 an ounce, while silver was down 1% at $31,370 an ounce.
Copper prices are volatile due to concerns about China.
Among industrial metals, copper prices are volatile today. This is because concerns about the largest importer, China, remain.
On the London Metal Exchange, it rose 1% to $9,983.0 per tonne, while it fell 0.9% to $4.6235 per pound.
Concerns about China have weighed on copper prices in recent weeks, as newly announced European tariffs on electric cars from China have raised concerns about a trade war with the West.
Moderate economic data from China also raised doubts about the domestic economic recovery.
Chinese data and information will also be announced this week.
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