Investing.com– Gold prices moved little on Friday as markets weighed contrasting expectations for more rate hikes from the Federal Reserve, while copper was set for a strong weekly finish on more stimulus measures from top importer China.
Gold heads for muted weekly close
While gold saw large swings this week, the yellow metal stayed largely within a tight trading range seen over the past month, as mixed signals from the Fed and the U.S. economy offered little cues for a breakout in either direction.
was flat at $1,958.26 an ounce, while steadied at $1,970.45 an ounce by 20:27 ET (00:27 GMT). Both instruments were set to end the week between 0.1% and 0.3% lower.
The Fed steady on Wednesday, and flagged at least two more rate hikes this year as it moves to curb high inflation.
But a slew of U.S. economic data- including soft , higher-than-expected and weak fueled bets that the central bank will have limited economic headroom to keep raising interest rates.
While gold was initially sold off after the Fed decision, it recouped most losses on Thursday as traders reassessed their outlook for more rate hikes. But the yellow metal still failed to break out of a $1,930 to $2,000 trading range it had settled into for the past month.
Still, an extended pause in the Fed’s rate hike cycle bodes well for the yellow metal, given that rising interest rates push up the opportunity cost of holding non-yielding assets.
Copper supported by Chinese rate cuts
Copper prices steadied on Friday, but were headed for their best week in nearly three months as markets bet on a demand recovery in China after the country began further trimming interest rates to support economic growth.
China trimmed medium and short-term lending rates this week, and is expected to cut its key next week, as Beijing struggles to shore up a slowing post-COVID economic recovery.
The move pushed up commodity prices across the board, on the hopes that improving economic conditions in China will fuel the country’s appetite for resource imports.
steadied at $3.8928 a pound, and were up 2.7% for the week.
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