Gold and copper prices struggled to gain traction this week as doubts persisted over the global economic outlook. Lingering supply chain disruptions in China and rising interest rates worldwide continue to dampen risk appetite among investors.
Spot gold hovered around the $1,900 level after multiple failed attempts to rise firmly above key resistance at $1,920. Concerns over higher borrowing costs combined with a stronger dollar have made holding bullion less attractive versus other currencies in recent months. While inflation worries provide some underlying support, economic headwinds pose challenges for further upside moves.
Meanwhile, copper futures remained under pressure near the $3.30 price point. Beijing’s stringent zero-Covid policies have disrupted industrial activity in major cities. Strict lockdowns and mobility restrictions are slowing factory output and construction, crimping demand for base metals. The outlook for Chinese growth, a major driver of metals consumption, remains uncertain.
Looking ahead, geopolitical risks and central bank decisions will be closely watched for clues on price direction. However, economic data and China’s Covid situation will also be pivotal in influencing global risk sentiment and commodity traders’ positioning. Until growth concerns ease or inflation proves more persistent, precious metals may struggle to attract safe-haven buying or benefit from increased speculation.
