Investing.com — Gold prices hit a record high in Asian markets on Monday amid growing expectations that the U.S. Federal Reserve will deliver a big interest rate cut later this week.
Reports of a second assassination attempt on Republican presidential candidate Donald Trump also prompted calls for safe havens, but Trump appears to be unharmed and the assailant has been arrested.
Trading volumes in Asia were somewhat limited by market holidays in Japan, China and South Korea.
It rose 0.4% to a record high of $2,589.02 an ounce, while December maturities rose 0.1% to $2,613.70 an ounce.
Gold benefits from expected Fed rate cut
Gold prices weakened and edged higher as the market awaited the Fed meeting.
The central bank is widely expected to cut interest rates on Wednesday, with markets divided between a 25 or 50 basis points cut.
The market was exactly 50/50 split between the two options, suggesting that concerns about weakness in the labor market are rekindling bets for bigger rate cuts.
The central bank is also expected to begin an easing cycle this week, with analysts expecting at least 100 basis points of interest rate cuts by the end of the year.
Lower interest rates bode well for precious metals, given that they reduce the opportunity cost of investing in non-yielding assets.
It rose 0.4% to $1,004.80 an ounce and 0.8% to $31.332 an ounce.
Demand for safe assets rises following assassination attempt on President Trump
Gold saw demand as a safe haven asset following reports that a second assassination attempt had been made on President Trump, this time on a golf course in Florida.
But Secret Service agents thwarted the plot in a shootout with the gunman, who was later arrested by authorities. Trump was unharmed in the incident, he said in a message on his fundraising website.
Copper prices stabilize after weak China data
Among industrial metals, copper prices benefited from a weaker dollar, but gains were limited by a series of weak economic data from China, the world's largest copper importer.
The London Metal Exchange benchmark rose 0.1% to $9,276.0 a tonne, while one-month contracts rose 0.1% to $4.2225 a pound.
A set of data released from China over the weekend showed growth in August was weaker than expected, with ups and downs.
The figures add to concerns about a slowdown in the Indian economy, which could hurt copper demand, but ANZ analysts said it could also give momentum to government stimulus measures.
