By Ambar Warrick
Investing.com– Gold prices moved little in Asian trade on Wednesday as a recovery in the stock market dented safe haven demand, while copper prices rose on the prospect of more stimulus measures in major importer China.
Spot gold prices were largely unchanged around $1,775.35 an ounce by 20:18 ET (00:18 GMT), while gold futures held around $1,789.70 an ounce.
The yellow metal came under pressure from a rally on Wall Street, as a series of strong earnings from major retailers Walmart (NYSE:WMT) Inc and Home Depot (NYSE:HD) boosted market sentiment.
Strong showings from the retailers also imply that consumer spending- a major driver of the U.S. economy- has remained resilient despite recent inflationary pressures.
This supported risk appetite, and dented demand for safe haven assets such as gold. The yellow metal has also been pressured by expectations of a continued rise in U.S. interest rates, which have pushed traders into the dollar.
Gold prices are now set to fall for a third straight session, and are down over 2% so far this year. Other precious metals also traded sideways on Wednesday. Platinum and silver futures fell 0.1% each.
In industrial metals, copper prices extended strong gains from Tuesday, as traders awaited more stimulus measures from China to support economic growth.
Copper futures rose 0.2% to $3.6315 a pound, extending a 0.7% rise on Tuesday after China outlined plans to release more liquidity and increase infrastructure spending.
Chinese officials said on Tuesday that the government will use special bonds and new credit guarantees to drive up infrastructure construction. The country also intends to support its beleaguered property market with more debt issuances.
The People’s Bank of China unexpectedly cut interest rates this week, as it struggles to support growth in the face of COVID-19 lockdowns.
The country is the world’s largest importer of copper, with the prospect of increased economic activity pointing to stronger demand for the red metal.
This notion also underpinned prices of other industrial metals. Nickel rose 2.5%, while zinc added 2.1%.
Source:investing.com