Why Did Gold Prices Slip Below $2,300? | Analyzing Market Trends & Copper Weakness

The Solana price predictionprecious metals market witnessed notable movements as gold prices dipped below the psychologically significant $2,300 threshold during Thursday's Asian trading session. This downward trajectory reflects growing trader preference for the US dollar ahead of crucial inflation data that could influence future interest rate decisions.Spot gold registered modest declines to $2,298.86 per ounce, while August gold futures slipped 0.2% to $2,309.35. The dollar's ascent to near two-month highs created headwinds for gold and other dollar-denominated commodities. Market participants maintained cautious positions in anticipation of Friday's PCE price index release - the Federal Reserve's preferred inflation metric that could shape monetary policy outlook.Industrial metals faced separate challenges, with copper prices continuing their weekly decline amid deteriorating sentiment toward China. London Metal Exchange benchmark copper contracts showed marginal gains at $9,573 per tonne, while one-month futures edged 0.1% lower to $3.3665 per pound. These movements followed disappointing Chinese industrial profit data and ongoing trade tensions between China and the European Union regarding electric vehicle tariffs.The PCE data's potential implications for interest rates remain a focal point for commodity markets. While expectations suggest modest cooling in May inflation, persistent price pressures above the Fed's 2% target could reinforce the case for maintaining elevated interest rates. Such monetary policy conditions traditionally diminish gold's appeal by increasing the opportunity cost of holding non-yielding assets.Precious metals across the board experienced downward pressure, with platinum futures declining 0.4% to $1,025.10 per ounce and silver futures dropping 0.5% to $29.117. These movements underscore the broader market reaction to shifting expectations around US monetary policy and global economic conditions.China's economic indicators continue to weigh heavily on copper markets, with May's stagnant industrial profit growth raising concerns about demand from the world's largest commodity importer. The combination of domestic economic challenges and international trade disputes creates ongoing uncertainty for industrial metal prices, particularly as market participants assess the potential duration and severity of these headwinds