Gold Prices Pull Back from Record High With Rate Cut in Focus
Metals were mixed in early, with gold slipping back after hitting a record on Tuesday. But base metals prices were gaining.
Gold was down 0.2% at $2,137.1 a troy ounce. The growing anticipation of a U.S. interest-rate cut in June provided a boost to gold yesterday, but while momentum is building, bullion’s performance will likely be capped until there is a clear sign of monetary easing, Sucden Financial analysts said in a note.
Now, investors will be turning their eyes to Federal Reserve Chairman Jerome Powell’s testimony to Congress later today, searching for hints on the timing of rate cuts.
Gold’s price is closely linked to rates, with higher rates diminishing the appeal of the non-interest-bearing precious metal.
Aluminum was up 0.2% at $2,231.5 a ton, while copper gained 0.4% to $8,526 a ton.