Gold Prices Steady Amid Rate, Trump Uncertainty; copper on strong China data By Investing.com

Investing.com– Gold prices settled near a one-month high in Asian trade on Friday, as uncertainty over U.S. interest rates and policy under President-elect Donald Trump fueled some safe-haven demand.

Among industrial metals, copper prices rose on positive gross domestic product data from top importer China, as recent stimulus measures appeared to have borne fruit.

Metals markets benefited from weakness in the dollar, which was set to snap a six-week winning streak following weak inflation data. But signs of strengthening consumer spending and the labor market continued to keep the dollar relatively well priced.

Gold benefited from dollar weakness, steady at $2,715.04 an ounce by 00:00 ET (05:00 GMT). fell 0.2% to $2,745.26 an ounce, although both indicators were near their strongest levels since mid-December.

Exchange rate uncertainty, Trump jitters fuel some demand for gold

The yellow metal saw some demand this week as traders speculated on the movement of US interest rates, amid mixed signals. Although inflation for December was milder, it still remained relatively high.

and the data also signaled resilience in the US economy, giving the Federal Reserve less incentive to cut interest rates quickly.

Markets were also on edge over what Trump’s policies would mean for inflation and the economy. Trump – who takes office on Monday – has promised to impose high trade tariffs on several countries, which could support inflation in the long run.

But overall gains from gold remain limited, as the US-brokered signing of a truce between Israel and Hamas signaled an easing of geopolitical tensions in the Middle East. This reduced some of the demand for gold.

Other precious metals were less bullish than gold this week. rose 0.3% to $943.85 an ounce, while falling 0.5% to $31.555 an ounce.

Copper optimistic due to positive Chinese data

The benchmark on the London Metal Exchange rose 0.2% to $9,268.50 a tonne, while March rose 0.6% to $4.4607 a pound.

China’s economy grew more than expected in the fourth quarter, at 5.4 percent. That brought China to 5% by 2024, keeping it in line with Beijing’s target.

The strength of China’s economy has been fueled largely by a series of aggressive stimulus measures, with Beijing seen preparing to provide more support in the face of US trade headwinds.

Copper prices have made strong gains over the past two weeks, amid bets that Chinese demand will lift further stimulus measures. China’s copper imports also hit a 13-month high in December.