Gold Up, Fed Meeting on Investors

On Monday morning, gold was higher in Asia. The US dollar is holding steady, and investors anticipate the Federal Open Market Committee’s (FOMC) policy announcement later this week.

By 12:52 a.m. ET (4:52 a.m. GMT), gold futures had risen 0.28 per cent to $1,806.90 per ounce, barely above the psychological level of $1,800 per ounce. On Monday morning, the dollar, which normally moves in the opposite direction of gold, fell slightly but stayed at multi-month highs.

When the FOMC meets tomorrow, it widely expects to make modest adjustments to the Fed’s monetary policy. With the conclusion coming a day later. On the other hand, investors will be looking for signs that the Fed would take a more hawkish position through asset cutting and interest rate hikes.

Manufacturing Purchasing Managers’ Index (PMI)

In terms of data, the manufacturing purchasing managers’ index (PMI) in the United States was more substantial than predicted at 63.1 in July. The services PMI was lower than expected at 59.8. Japan’s PMI for assistance was issued earlier in the day in Asia.

Meanwhile, in Europe, a growing number of countries have strengthened their defences against the Delta version of COVID-19. Moreover, they are aiming to enhance immunization rates.

In India, physical gold demand, a key gold centre, has been uneven in recent weeks due to price volatility. That has forced dealers to raise discounts to their highest levels in over a month to encourage purchases. According to the US Commodity Futures Trading Commission data, investors increased their net long positions in COMEX gold in the week ending July 20.

Copper Price

Copper prices jumped on Monday as floods in China’s leading consumer spurred demand prospects at a time when stockpiles were reducing, as well as a weaker currency. Benchmark copper on the London Metal Exchange rose 0.8 per cent to $9,593 per tonne. It reached its highest level since June 16 at $9,665. Additionally, it appeared to be on course for a fifth consecutive session of increases.

Copper primarily utilizes in the building and power industries, and China consumes over half of the world’s copper. As reflected in the copper price, sentiment has improved in recent days, said Commerzbank analyst Daniel Briesemann.

According to a Singapore-based dealer, the market was pricing in output disruptions caused by floods in Henan and demand for rehabilitation. On Thursday, copper inventories in LME-registered warehouses fell to 205,800 tonnes. While metal in Shanghai Futures Exchange-monitored warehouses fell to 96,087 tonnes, the lowest since February 10. Yangshan premiums have risen to $47.50 per tonne. They were up from recent lows of $21 in June, indicating increased physical demand in China.

The dollar fell as markets awaited the outcome of a Federal Reserve meeting for signals on the speed of monetary policy adjustments, which might affect liquidity and base metals.

Aluminium lost 0.2 percent to $2,498 per tonne. Zinc fell 0.2 percent to $2,956, lead gained 0.3 percent to $2,381, tin fell 0.7 percent to $34,250 per tonne. Nickel rose 0.4 percent to $19,455 per tonne after reaching its best level since February 25.