Gold And Copper Prices Soar

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Gold And Copper Prices Soar

Gold And Copper Prices Soar Ahead Of Fed Minutes

The prices of Gold (XAU/USD) and Copper are on the rise amid a weaker USD. In addition, the bond yields have also retreated ahead of the high-intensity 'fed meeting' event.

The market believes that the Fed is done with rate hikes, which means we are now moving towards the phase of 'rate cuts'. The highly anticipated Fed meeting is scheduled later today & is closely watched by the Gold and copper traders.

China's Economic Data Supports Gold

If we look at the Copper, it is one of the few industrial metals which has gained recently. According to analysts, it is mainly driven by the positive sentiment toward China. At the same time, the market is also facing tighter suppliers of Copper as several mines in Panama & Peru are facing difficulties.

Similarly, the Gold prices are also showing a bullish trend as the precious metal is just a few dollars away from the $2000 level. Once again, the bullish gold prices can be traced back to the rumors that the Fed has reached the end of its rate cycle.

For now, Spot Gold is exchanging hands at the rate of $1992.17 and is up by 0.7% for the session. Similarly, the Gold futures (December) are trading near $1994.00 with a +0.7% jump.

If we look at the Fed issue, some analysts believe that the Fed will stick with its stance of higher interest rates for a longer period of time. After all, the labor market is showing weakness while inflation is also going down. Both of these factors mean the Fed has little reason to go with yet another rate hike.

Furthermore, Copper prices are also showing an upward trajectory, which can be attributed to various reasons. One of the major reasons is the fear that the Copper supply is facing disruptions. In simple words, the Copper supply is expected to slow down in the near term, which is pushing its price higher.

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