By Ambar Warrick
Investing.com– Gold prices were pressured near key support levels on Tuesday as the dollar steadied from recent losses, while copper prices retained recent losses amid growing concerns over slowing global economic growth.
Prices rose 0.2% to $1.652.10 an ounce. However, expiring December prices also rose 0.2% by 19/23 ET (23/23 GMT). As a result, the recent losses were reduced, Bullion prices fell 0.6% on Monday
Despite increasing uncertainty over U.S. monetary policies, gold and the greenback traded within the same tight trading ranges as in recent weeks. Although gold prices were somewhat buoyed by hopes of a Federal Reserve dovish tilt, markets still expect a Fed rate hike of 75 basis points in November.
After three consecutive sessions of losses on Monday, the dollar stabilized on Monday. However, it remained at its highest level since 2008’s financial crisis.
As the opportunity cost of holding gold rose, U.S. interest rates rose and this weighed heavily on it. This year, gold has lost much of its appeal as an inflation hedge and safe haven.
Bullion prices are expected to remain high in the near term due to rising U.S. rates.
Copper prices fell on Tuesday, after falling in the previous session. This was due to a series economic prints that were weak on Monday, which indicated a grim outlook for global copper demand.
Following a 1.4% drop in the previous session, they were unchanged at around $3.4325 per Pound.
While data showed China’s copper imports surged in September as the country ramped up infrastructure spending in recent months, markets remained wary of recent political developments in the country.
President Xi Jinping’s consolidation of power at the National Congress sparked concerns over a fresh crackdown on the country’s richest organizations and businessmen, causing a severe sell-off in Chinese markets.
China’s third-quarter beat analyst expectations, but came well below the Communist Party’s target.
Jinping’s commitment to maintaining the economically-damaging zero-COVID policy also brewed concerns over China’s growth prospects, keeping the outlook for copper subdued.
Slowing global activity is also causing increased headwinds for the red metal. The Eurozone reported weak readings that the economic major likely decreased in the third quarter.