Gold prices edged lower in Asian trading on Monday after dovish remarks from Fed Chair Jerome Powell fueled speculation of a September rate cut, prompting investors to rotate into riskier, higher-yielding assets.
Spot gold fell 0.2% to $3,363.88 per ounce, while gold futures slipped 0.3% to $3,408.0. The metal had rebounded about 1% last Friday following Powell’s speech but struggled to extend gains. Powell’s comments also pressured the U.S. dollar, benefiting dollar-denominated commodities. Fed funds futures now imply an 84.1% chance of a September cut, up from 70% last week.
Among other precious metals, platinum eased 0.4% and silver dipped 0.1%.
Industrial metals posted broad gains on hopes that lower rates could bolster economic growth. London copper rose 0.4% to $9,780.30 per tonne, COMEX copper added 0.4% to $4.5485 per pound, and nickel advanced 0.6% to $14,997.63 per tonne. Iron ore surged sharply after Rio Tinto suspended production at its Guinea mine following a fatal accident.