Gold and copper prices stay steady on Friday as investors are called hunkered down ahead of crucial US inflation data and FED's follow-up decision. Meanwhile, in the face of optimism in global markets, Gold trading continues to run smoothly.

This can become the second positive week for Gold trading after loosening the COVId restriction in China. The majority of losses some time ago were then corrected this week. Recent weakness in the Dollar is also one factor that benefits gold prices.

Gold hovered around $1,789.43 an ounce, and gold futures steadied at $1,801.25 an ounce. This measurement instrument is also related to the continuous producer price index. Tightening monetary conditions, as well as rising interest rates, may have an impact.

The Federal Reserve is said to have plans to hike interest rates for longer in such a scenario. Some market participants say that this is a step taken by the US to deal with a recession. On the other hand, they are also quite skeptical of the US decision.

Gold Prices Had Settleack Above $1,800 but Still Focus on Fed's Next Move

Rising interest rates were an enormous weight on gold prices this year. It could drag the metal off annual highs as the opportunity cost of non-yielding assets increases. The direction from FED has also yet to appear, so gold investors are said to continue to focus on FED.

Prices of Gold are also affected by the relaxation of several anti-COVID movement restrictions and testing mandates. Markets also hope that there will be a recovery. Given that, the country is still struggling with record-high increases in infections.

However, on Thursday, the prices settled back above $1,800 an ounce for the first time since four regular sessions. Gold investors are looking at a lot of event risk in the coming days, including US Inflation reports which will be distributed the following week.

In addition, it is predicted that the meeting of the Federal Reserve will make the central bank raise its benchmark interest rate by 0.5 percentage points. According to some traders, there is a possibility that Gold can reach $ 2,000 in price if the FED influences gold trades.

Since the Dollar eased, investors positioned themselves for the gold price. The dollar index also slipped 0.3%, making Gold less expensive for other currency holders. They are now preparing to find fresh financial inputs and trade leading up to the FED's policy meeting.

But, any signs that inflation remained stuck during this month could also trigger changes in the market. The reading is expected to experience a tightening monetary condition. So this is also a warned participant in the market to remember that a recession could occur.

According to Media Zawya, the number of Americans filing new claims for jobless also increased. This could lead the US Economy into a short and shallow recession over the coming year. And spot gold was little changed at around $1,800.

FED Meet Next Week, Many Predict the Central Bank Will Provide Crazy Policies

Last week, Gold had soared 2%, the highest gain since May. The Dollar drops to a near four-month low. And payrolls like this that the FED judges are ridiculous, so most likely, the Central Bank of America will present a crazy policy soon.

"We have established a price uptrend on the daily chart, which invited technical-based buying. This will also support the commodity markets and see the US dollar index back off," Jim Wyckoff said when asked about the Dollar's fate amid the onslaught of gold prices.

The interest rate hike is a weapon that the FED will use to deal with turmoil in the market. However, this is also considered a dangerous step. Gold is currently firm at stable numbers, and investors are also waiting for inflation data and follow-up action from FED.