Investing.com – Gold prices edged lower on Friday, paring some of this week’s gains as comments from several Federal Reserve officials offered a more sober view on the prospect of rate cuts.
Gold prices have risen to nearly $2,400 an ounce this week following weak U.S. economic data. But it pulled back from those levels on Thursday and Friday.
It was steady at $2,377.40 an ounce, while the June contract was slightly lower at $2,381.10 an ounce at 00:19 ET (04:19 GMT).
Gold retreats, but gains weekly as Fed officials downplay interest rate cuts
Gold fell on Thursday after several Federal Reserve officials warned against an immediate interest rate cut.
Several members of the central bank’s rate-setting committee said the central bank needed more evidence that inflation had fallen above slightly weak levels in April.
This has traders beginning to price in some expectations for a rate cut in September. It also rebounded from losses earlier this week.
Still, some weaker-than-expected data has gold prices expected to rise 0.7% on a weekly basis.
Gold is also on track to hit a record high above $2,430 an ounce, although reaching that level seems unlikely in the short term.
Other precious metals retreated on Friday but were set for sharp weekly gains. It fell 0.2% this week but rose 6.2%; it fell 0.4% this week but rose 4.5%.
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Copper prices mixed, hurt by poor performance of China’s economy
Among industrial metals, one-month copper futures fell from a two-year high on middling economic data. But three-month copper futures advanced higher and are set for a strong week as markets bet on tightening supply in the coming months and an eventual recovery in demand.
The London Metal Exchange rose 0.6% to $10,445.0 a ton, and the London Metal Exchange rose 0.3% to $4.8935 a pound.
Data from China on Friday painted a mixed picture of the economy. While growth exceeded expectations, growth slowed and contraction accelerated. The growth of Chinese has also slowed.
The data showed a chaotic outlook for the world’s largest copper importer, which has launched more stimulus measures to prop up economic growth.
Three-month copper futures rose on the prospect of a recovery in demand, rising nearly 4% this week. They are also at two-year highs.
