By Ambar Warrick
Investing.com– Gold prices slipped on Thursday as fears of a U.S. recession were eased by soft inflation data, while copper prices stuck to five-week highs as the dollar retreated.
As of 2113 ET (0113 GMT), fell 0.1% to $1,789.91, while were down 0.5% at $1,805.45.
Gold prices had rallied to a one-month high on Wednesday after data showed that U.S. eased in July, which dented the dollar. But they had shortly retreated from their peak, as the data triggered a widespread rally in risk-driven assets.
Gold prices now appear to be caught between a weakening dollar and improved risk appetite. , due at 0830 ET on Thursday, may provide further cues to the yellow metal.
Producer price inflation is expected to mirror a fall in consumer prices. But any signs that this trend did not extend to factory prices could dent risk appetite.
dropped 1%, while were largely unchanged. The was flat on Thursday after plummeting 1.1% in the prior session.
Weakness in the dollar, amid growing bets on a smaller interest rate hike by thein September boosted industrial metal prices.
rose 0.2% to $3.64 a pound, following a 1.7% rally in the prior session. and rallied 2.5% and 4.2%, respectively, on Wednesday.
But the spike in industrial metal prices comes despite a decline in factory activity across the globe. fell through July, while manufacturing activity contracted in the face of COVID-19 lockdowns.
Industrial activity in the U.S. and Eurozone is also declining in the wake of surging commodity prices and increased supply chain issues earlier this year.