Investing.com– Gold prices stabilized in Asian trading on Monday, hovering near record highs as investors awaited further information on U.S. interest rates from key inflation data scheduled for later in the week.
Gold steadies with CPI data on tap
Throughout last week, the yellow metal experienced drastic fluctuations amid heightened volatility in broader financial markets but ultimately finished the week slightly higher. Gold also saw increased demand as a safe haven asset due to concerns over escalating tensions in the Middle East and Ukraine’s offensive against Russia.
Gold rose 0.1% to $2,433.62 an ounce, while futures expiring in December remained steady at $2,472.20 an ounce by 01:03 ET (05:03 GMT).
Spot gold was also just shy of $50 from its record high. However, the potential for further price increases in gold was restrained by the anticipation of inflation data expected on Wednesday.
The upcoming figures are projected to reveal a slight cooldown in inflation for July, which could provide the Federal Reserve with more assurance to initiate cuts to interest rates.
There is divergence among traders regarding whether the central bank will opt for a 25 or 50 basis point cut in September.
Lower interest rates typically benefit gold as they diminish the cost associated with investing in the yellow metal.
Copper edges higher, but nurses losses
Meanwhile, copper prices inched up on Monday but were consolidating steep losses observed in recent weeks amid deteriorating sentiment towards China, the top importer.
Apprehensions surrounding a broader economic slowdown have also negatively impacted the red metal, as sluggish economic growth does not bode well for copper demand.
The benchmark on the London Metal Exchange climbed 0.2% to $8,853.50 a ton, and one-month futures increased by 0.2% to $3.9912 a pound.
Both copper contracts experienced significant declines over the past month due to a string of weak economic indicators from China, including consecutive months of drops in Chinese copper imports.
More economic data from China is set to be released this week, with industrial production and retail sales figures scheduled for Thursday.
