Investing.com– Gold prices moved little on Monday as markets awaited a string of Federal Reserve speakers and testimonies this week for more cues on monetary policy, while copper retreated as investors sold off recent profits.
Trading volumes in metal markets are expected to be thin on Monday, on account of a U.S. market holiday, while anticipation of a testimony by Fed officials, most notably later this week, is also expected to deter big bets.
Gold remains rangebound, Fed in focus
was flat at $1,957.88 an ounce, while fell 0.1% to $1,971.20 an ounce by 21:05 ET (01:05 GMT).
Both contracts stuck to a tight trading range seen over the past month amid mixed cues on the path of U.S. monetary policy, which has largely determined the trajectory of gold over the past year.
While the Fed paused its rate hike cycle for the first time in over a year last week, the bank still warned of the possibility of at least two more hikes this year, dimming the prospect for a recovery in gold prices.
Higher interest rates weigh on gold prices by pushing up the opportunity cost of holding non-yielding assets. While the dollar still dropped after the Fed decision last week, gold saw limited support.
Markets are now by the Fed in July, given that inflation is still trending well above the central bank’s 2% annual target.
A testimony before Congress by Fed Chair Powell on Wednesday is expected to provide more cues on monetary policy, while several more Fed officials are also due to speak during the week.
Copper sees profit taking, China growth in question
Copper prices retreated on Monday following three weeks of strong growth, as traders locked in some recent profits. But questions over an economic recovery in China also weighed on markets.
fell 0.5% to $3.8753 a pound, after rising as much as 5% over the past three weeks. A bulk of this rebound was driven by traders buying into copper after prices sank to six-month lows in May.
Concerns over Chinese demand persisted, as a slew of major investment banks slashed their gross domestic product forecasts for the country, citing a slower-than-expected economic recovery despite the lifting of anti-COVID measures earlier this year.
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