Gold was flat on Monday after four weeks of slumping….


Gold was flat on Monday after four weeks of slumping, while copper was flat after China cut interest rates less than expected as the economy expects more in US monetary policy.

This week, the focus will be on the Jackson Hole Symposium on Thursdays and Fridays, when Fed Chairman Jerome Powell should give the US more signs on the way.
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Gold offset some of its recent losses after falling below the key $1,900 per ounce level as the slowing economy in China also weighed on sentiment and some wanted a safe concept haven. The People’s Bank of China greatly missed expectations for the economy by revising its lending rates (LPR) on Monday.

Spot gold rose 0.2 percent to $1,892.
Gold futures for December delivery were up 0.3% at $1,921.95 an ounce as of 00:16 ET (04:16 GMT). Both devices are still trading at five-month lows.

Gold should be trading in a range in the coming days as investors are out ahead of the Jackson Hole meeting this week.
Strong US economic data and labor market data have put heavy pressure on the price of gold in recent weeks as the economy begins to take on higher inflation. Powell is expected to see more of the Fed’s rate plans after the minutes of the Fed’s July meeting showed that most policymakers were raising interest rates to avert further inflation.
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and Treasury yields rose on expectations of higher interest rates weakening gold and other commodities.
Rising interest rates in recent years have increased the time value of gold assets, forcing most traders to peg them to the US dollar as their preferred safe-haven asset.

In the metal market, copper prices were little changed on Monday, although the interest rate cut in China, the largest importer, disappointed the market.

Copper futures held steady at $3,7207 per pound.

People’s Bank of China lowered its one-year LPR from 10 basis points to 3.
45% and 5-year LPR remained unchanged at 4.20%. Analysts had predicted a minimum 15 basis point cut in all rates.

The move shows the world’s largest exporter of copper has little room to continue easing policy and boosting growth – a trend that could turn its appetite for the red metal.

China’s copper imports fell in July as the country’s economy recovered from the COVID-19 outbreak.
This has put a heavy burden on copper prices for the past three weeks.

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