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, while expiring in December also rose 0.2% by 19:23 ET (23:23 GMT). Bullion prices fell 0.6% on Monday as the curbed recent losses.
But gold and the greenback both remained within tight trading ranges seen in recent weeks, amid growing uncertainty over the path of U.S. monetary policy. While hopes of a potential dovish tilt by the Federal Reserve somewhat benefited gold prices last week, markets are still pricing in a of a 75 basis point rate hike by the Fed in November.
The dollar also steadied on Monday after three consecutive sessions of losses, while remained pinned near their highest levels since the 2008 financial crisis.
Rising U.S. interest rates weighed heavily on gold this year, as the opportunity cost of holding the yellow metal rose. Gold has also largely lost its appeal as a safe haven and an inflation hedge this year.
With U.S. interest rates set to keep rising, pressure on bullion prices is expected to persist in the near-term.
Among industrial metals, copper prices were muted on Tuesday after tumbling in the prior session, as a series of weak economic prints on Monday pointed to a bleak outlook for global copper demand.
were unchanged around $3.4325 a pound after falling 1.4% in the prior session.
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.
The red metal is also facing increased headwinds from slowing activity across the globe. Weak readings from the Eurozone showed that the economic major is likely to have shrunk in the third quarter.