© Reuters.
Investing.com– Gold prices came close to a one-month high on Monday, rising past key levels as caution before a string of key economic readings fed safe haven demand for the yellow metal.
Weakness in the , amid growing bets that the Federal Reserve was done raising interest rates, also benefited the yellow metal, as did signs of weakening economic conditions across the globe.
rose 0.5% to $2,013.69 an ounce, while expiring in December rose 0.6% to $2,014.35 an ounce by 00:15 ET (05:15 GMT). Both instruments were now comfortably above the $2,000 level after flitting with the level for the past week.
A settlement above $2,000 is also expected to invite more gains in gold, given that the level was seen as a key resistance point.
Econ data deluge on tap
But further gains in gold, particularly those driven by safe haven demand, will be largely contingent on the economic readings due this week. In the U.S., – the Fed’s preferred inflation gauge- is due on Thursday, as is a second reading on third-quarter .
Any signs of weakening inflation and economic growth are likely to push up expectations for an early rate cut by the Fed, which could be positive for gold prices. U.S. and readings are also due this week.
Beyond the U.S., euro zone will also be in close focus this week, as will and readings from Japan.
Any signs of worsening economic conditions across the globe are expected to drive up safe haven demand for gold. But given that most major central banks have signaled that interest rates will remain higher for longer, the path of the yellow metal still remains uncertain.
Copper edges lower as China PMIs approach
Among industrial metals, copper prices fell slightly on Monday after clocking two straight weeks of strong gains.
expiring in January fell 0.3% to $3.8220 a pound, after rising 1.5% last week.
Data on Monday showed a sustained, albeit smaller decline in in China, pointing to continued weakness in the world’s largest copper importer.
The reading put upcoming from China squarely in focus, for more cues on business activity in the country through November. PMIs for October had largely missed expectations.
Still, traders held out for more stimulus measures from Beijing to spur local economic growth, as well as copper demand.
