Gold prices hit a record high above $2,700; China-backed copper by Investing.com

Investing.com– Gold prices extended their record period in Asian trade on Wednesday, as lingering optimism about lower U.S. interest rates weighed on the dollar, with more clues on the U.S. economy coming in the coming days.

Among industrial metals, copper prices fell slightly after hitting two-month highs on optimism over more stimulus in top importer China.

Broader metals prices were supported by recent declines in , which fell to a 14-month low after the Federal Reserve cut interest rates last week. The central bank also announced the start of an easing cycle, which is expected to see rates fall further in the coming months.

rose 0.3% to a record high of $2,670.52 an ounce, while December expiry hit a peak of $2,694.75 an ounce.

Gold Rises on Rate Cut; more clues expected

The prospect of lower interest rates has been a key support for gold as traders price in a lower opportunity cost to invest in non-yielding assets.

A slew of Fed speakers are set to offer more clues about interest rates this week, most notably an address on Thursday.

data – the Fed’s preferred gauge of inflation – is due on Friday and is also expected to factor into the central bank’s rate plans.

Citi analysts said the Fed was likely to cut rates by a total of 125 basis points after a 50 bps cut last week. Goldman Sachs expects cuts of 25 bps during each meeting from November through June 2025.

The prospect of lower rates hammered the dollar, enabling gains in precious metals. Gold also saw an asylum claim amid heightened tensions in the Middle East as Israel continued its offensive against Hamas and Hezbollah.

Other precious metals fell slightly on Wednesday, but also had strong gains in recent sessions. was down 0.1% at $988.80 an ounce, while it was down 0.5% at $32.267 an ounce.

Copper prices mixed, China joy persists

The London Metal Exchange benchmark rose 0.3 percent to $9,858.50 a tonne, while on the month it fell 0.2 percent to $4.5158 a pound. Both contracts were at more than two-month highs.

The red metal rallied strongly on Tuesday after top importer China unveiled more monetary stimulus aimed at supporting growth, which traders bet would help fuel the country’s copper demand.

But analysts said Beijing needed to do more to support growth, particularly fiscally.