Gold prices steady amid weak year-end trading, strong dollar adds pressure By Investing.com
Investing.com – Gold prices were largely unchanged in Asian trade on Friday amid weak year-end trading, though they were poised for a sharp rally this week amid a cautious outlook following a hawkish U.S. central bank move.
it was largely unchanged at $2,633.40 an ounce, while February expiry was down 0.2% at $2,649.91 an ounce by 00:20 ET (05:20 GMT).
Gold trading tends to have low volumes and low prices towards the end of the year as many institutional traders and market participants close their books ahead of the holidays.
In addition, year-end releases of economic data and major policy decisions tend to be smaller, reducing the catalysts for significant price volatility.
The yellow metal is set to rise 0.3% on the week after losing more than 1% in the previous week. A strong dollar following the Fed’s sharp move last week continued to pressure gold.
Gold under pressure from a strong dollar
It was slightly higher in Asian trading on Friday, hovering near the two-year high it touched last week.
A stronger dollar often affects gold prices because it makes the yellow metal more expensive for buyers using other currencies.
Gold prices fell sharply after the Fed’s policy meeting indicated just two more rate cuts in 2025, down from a previous expectation of four.
Higher interest rates put pressure on gold, making it more attractive compared to interest-bearing assets like bonds
Other precious metals were also muted on Friday. they were unchanged at $954.50 an ounce, while they were steady at $30.380 an ounce.
Copper gains on news of concentrate shortages, strong rise in dollar cap
Among industrial metals, copper prices were higher after a Reuters report showed top Chinese copper smelters set lower guidance for refining costs for the first quarter of 2025 compared with this quarter, reflecting ongoing shortages of copper concentrates.
At a meeting in Shanghai, China Smelters Purchase Team representatives agreed on new copper concentrate processing and refining rates, setting them at $25 per metric ton and 2.5 cents per pound, 28.6% below guidance for the fourth quarter of $35 per ton and 3.5 cents per pound.
The red metal failed to take full advantage of this news, as the strong dollar weighed heavily.
The benchmark on the London Metal Exchange rose 0.5% to $9,008.50 a tonne, while February fell 0.1% to $4.1360 a pound.
