By Ambar Warrick
Investing.com-- Gold prices kept to a tight range on Thursday amid mixed signals over U.S. monetary policy, while Copper prices fell after a profit warning from a major Chinese property developer drove more concerns over demand.
Spot gold rose 0.2% to $1,765.65 an ounce by 22:51 ET (02:51 GMT), while gold futures rose 0.15% to $1,778.75. But both instruments were trading largely within a $1,750 to $1,810 range seen over the past two weeks.
Gold prices had slipped on Wednesday after the minutes of the Federal Reserve’s July meeting showed that most members supported more rate hikes to bring down inflation. While the central bank intends to eventually reassess its pace of tightening, it indicated that it is likely to keep hiking rates at a sharp clip until inflation is well within its 2% target range.
The dollar index rose after the minutes, as did Treasury yields. The Fed hiked rates by 0.75% last month, with traders now .
While data last week did show that U.S. inflation had likely peaked, Fed members indicated that it was still far too high to consider reducing the pace of monetary policy tightening.
In industrial metals, Copper futures fell 0.2% after Country Garden Holdings Company Ltd (HK: 2007 ), one of the largest property developers in China, flagged a severe profit drop due to a worsening real estate market.
An extended slowdown in China’s real estate market is likely to impact broader economic activity in the country, which in turn could impact demand for commodities. The country is the largest copper importer in the world.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.