Investing.com — Gold prices hit a record high in Asian markets, benefiting from continued support for lower U.S. interest rates, while rising uncertainty ahead of a series of signals this week also drove prices higher.
Last week, precious metals surged to record highs after the Federal Reserve cut interest rates and have largely maintained that momentum. Lower dollar and Treasury yields also benefited the entire precious metals market.
It rose 0.3% to a record high of $2,631.19 an ounce and added 0.4% to $2,655.80 an ounce.
Gold rises on rate cut joy, more clues come in
Gold rose after the Federal Reserve cut interest rates by 50 basis points, signalling the start of an easing cycle that has analysts expecting as much as 125 basis points cuts this year.
Falling interest rates bode well for gold, given that the opportunity cost of investing in non-yielding assets decreases. Falling interest rates also make bonds less attractive.
Further signals are expected from the Fed and the US economy this week, with a number of Fed members scheduled to speak in the coming days.
Inflation data, the Fed's key inflation measure, is also due to be released on Friday and is likely to influence the central bank's plans for further rate cuts.
Outside the Fed, interest rate cuts are expected to be announced at meetings in Switzerland and Sweden this week, with most central banks around the world set to join the Fed in kicking off monetary easing cycles.
Prices of other precious metals, except gold, were weaker. Crude oil prices fell 0.6% to $974.10 an ounce, and futures fell 0.2% to $31.430 an ounce.
Copper prices rise, focus on China
Among industrial metals, copper prices rose cautiously on Monday, although optimism over lower interest rates also boosted the red metal in recent trading.
The focus turned to further stimulus measures in China, the largest importer, after the People's Bank of China unexpectedly cut repo rates to further boost domestic liquidity.
The London Metal Exchange's benchmark price rose 0.3 percent to $9,525.0 a tonne, while one-month contracts rose 0.3 percent to $4.3420 a pound.
A number of Purchasing Managers' Indexes (PMIs) are due to be released around the world this week, providing further clues on business activity, particularly in manufacturing.
