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Investing.com — Gold prices steadied on Thursday after falling in the prior session as the minutes of the Federal Reserve’s June meeting showed that policymakers supported more rate hikes, presenting a dour outlook for metal markets.

Wednesday’s losses saw gold wipe out most of a recent recovery, as the yellow metal struggled to rise from a three-month low hit in June.

Despite worsening economic conditions, investors have largely pivoted to the as a preferred safe haven, amid growing expectations that the Fed will keep raising interest rates in the coming months.

rose 0.1% to $1,917.58 an ounce, while fell 0.2% to $1,924.15 an ounce by 20:13 ET (00:13 GMT). Both instruments lost between 0.4% and 0.6% on Wednesday.

Fed minutes point to more rate hikes, gold under pressure

The showed that nearly all members of the central bank supported more interest rate hikes this year, citing stubborn inflation and unforeseen strength in the labor market.

The Fed had kept rates on hold in June, but had forecast an at least 50 basis point (bps) hike in rates this year. Rising interest rates bode poorly for non-yielding assets such as gold, given that they push up the opportunity cost of holding said assets.

Wednesday’s losses saw spot gold pull back from the $1,925 to $1,935 an ounce range, which analysts had said pegged as a support level for bullion. The yellow metal is now back to testing the $1,900 support level.

The Fed minutes saw traders ramp up expectations for a rate hike later in July, with that the Fed will raise rates by 25 bps during a late-July meeting.

Focus is now on key U.S. data due on Friday, for more cues on the labor market. The reading is likely to factor into the Fed’s July decision on rates.

Copper steadies, China fears present downside pressure

Among industrial metals, copper prices steadied on Thursday after falling for the past two sessions. The prospect of worsening economic conditions, amid rising rates, presented a weaker demand outlook for the red metal.

were flat at $3.7615 a pound, after losing nearly 1% in the past two sessions.

Weak economic data from major importer China, coupled with a potential escalation in a Sino-U.S. trade war, also presented a dour outlook for copper. China imposed curbs on key chipmaking material exports to the U.S. this week, which markets fear could invite retaliatory measures.