Gold prices hit record high on rate cut bets, Trump assassination attempt By Investing.com

Investing.com– Gold prices hit a record high in Asian trade on Monday, amid growing bets that the Federal Reserve will cut interest rates by a wider margin later this week.

Reports of a second assassination attempt on Republican presidential candidate Donald Trump also spurred some demand for safe havens, although Trump appeared to be unharmed and the attacker was apprehended.

Trading volumes in Asia were somewhat limited by holidays in Japan, China and South Korea.

It rose 0.4 percent to a record high of $2,589.02 an ounce, while December expiry rose 0.1 percent to $2,613.70 an ounce.

Gold benefits from rate cut bets as Fed looms

Weaker allowed for more strength in gold prices as markets awaited a Fed meeting.

The central bank is expected to do so on Wednesday, although markets are divided between a 25 or 50 basis point cut.

showed markets split exactly 50% between the two options, with bets on a bigger discount coming back into play amid concerns about labor market weakness.

The central bank is also expected to begin an easing cycle starting this week, with analysts expecting at least 100 bps of interest rate cuts by the end of the year.

Lower rates bode well for precious metals as they reduce the opportunity cost of investing in non-performing assets.

rose 0.4% to $1,004.80 an ounce, while rose 0.8% to $31.332 an ounce.

Trump’s assassination attempt spurs demand for safe haven

Gold was granted asylum after reports of a second assassination attempt on Trump, this time on his golf course in Florida.

But Secret Service agents thwarted the attempt in a reported shootout with the attacker, who was later apprehended by authorities. Trump was unharmed during the event, he said in a message on his fundraising website.

Copper prices steady after weak China data

Among industrial metals, copper prices benefited from a softer dollar. But gains in the red metal were hampered by a string of weak economic readings from China, the world’s biggest copper importer.

The London Metal Exchange benchmark rose 0.1 percent to $9,276.0 a tonne, while on the month it rose 0.1 percent to $4.2225 a pound.

A string of data out of China over the weekend showed they rose less than expected in August, while rising and falling.

The readings heightened concerns about the country’s economic slowdown, which could portend a boon for its appetite for copper. But ANZ analysts said the government may now have more momentum to release stimulus measures.