Harvest Global Markets :

Copper prices fell after data provided additional indications of a slowing economic rebound in China, while gold prices slipped on Wednesday as markets awaited additional clues regarding the raising of the U.S. debt ceiling. Copper fates sank 0.7% to $3.6340 a pound, and were set to lose around 6% in May as information showed China’s assembling area shrank for a second continuous month in May. The perusing, combined with a drop in general business action development, highlighted an easing back financial bounce back on the planet’s biggest copper shipper, and reasonable signs frail interest for the red metal. Copper prices were trading just above their weakest levels in nearly seven months, and they were on track for their worst monthly decline in 11 months.

This week also saw a slew of economic data from the United States. Nonfarm payrolls data for May, which is due on Friday, is expected to heavily influence the Federal Reserve’s plans for future rate hikes. In anticipation of the data and as a result of some profit-taking, the dollar fell from its 10-week highs. However, the outlook for non-yielding assets like gold was dimmed as a result of an increasingly hawkish Fed outlook, which maintained the greenback’s relative stability. The opportunity cost of investing in non-yielding assets goes up when interest rates go up, which hurt gold until 2022.

In any case, the yellow metal might see expanded place of refuge interest in case of a U.S. default, which is probably going to set off a downturn. A bipartisan bill to raise the debt ceiling and avert an economic crisis is up for vote in Congress this week. However, a number of Democrats and Republicans in Congress have indicated that they are unhappy with the bill and intend to vote against it.

By 1100 HRS PKT, spot gold fell by 0.2 percent to $1,955.14 an ounce, while futures held steady at $1,973.25 an ounce. On Tuesday, both instruments recovered from over two-month lows by nearly 1%. The yellow metal had tumbled from record highs hit before in May, and was presently set to clock a month to month loss of more than 1%. Growing expectations that the Federal Reserve will raise interest rates further in June, in light of persistent inflation and the resilience of the jobs market, accounted for the majority of this weakness. The Federal Reserve is additionally set to keep financing costs higher for longer.