Gold Prices Edge Up on COMEX Amid West Asia Geopolitical Tensions
Gold prices on the COMEX saw a slight increase today, driven by escalating geopolitical tensions in West Asia, which are prompting investors to seek protective assets. "Geopolitical concerns are escalating and will most likely be behind a new near-term bull unfolding soon," Peter Cardillo of Spartan Capital Securities noted.
However, the prospect of higher-than-expected inflation has delayed expectations for rate cuts by the US Federal Reserve to later this year. This factor could weigh on gold prices. As of 0806 IST, the August gold contract on COMEX was at $2,333.50 per ounce, up 0.1% from the previous close.
Copper prices on the London Metal Exchange fell today due to weak demand from China, indicated by recent economic data. "While supply-side shortfalls support prices, risks from weak demand, particularly in China, loom large," analysts at StoneX Intelligence said.
Despite weak demand, supply concerns might support copper prices. Production at Anglo-American's Los Bronces copper mine in Chile is expected to drop by about 30% due to plant maintenance. As of 0848 IST, the three-month copper contract on LME was at $9,647.0 per ton, down 0.4% from the previous close.
