Gold prices hit record high as rate cuts persist by Investing.com

Investing.com– Gold prices hit a record high in Asian trade as the yellow metal benefited from lingering encouragement from lower U.S. interest rates, with uncertainty ahead of a flurry of signals this week also supporting prices .

The yellow metal rose to record highs last week after the Federal Reserve cut interest rates and largely continued that momentum. A weaker dollar and Treasury yields also benefited the broader metals markets.

rose 0.3 percent to a record high of $2,631.19 an ounce, while rose 0.4 percent to $2,655.80 an ounce.

Gold supported by duck-cut joy; more hints on touch

The yellow metal rose as the Fed cut interest rates by 50 basis points and signaled the start of an easing cycle that analysts expect will cut rates by as much as 125 bps this year.

Lower rates bode well for gold as they lower the opportunity cost of investing in non-yielding assets. Lower rates also reduce debt attractiveness.

More signals from the Fed and the US economy are coming this week. A lot of Fed members, in particular, will be speaking in the coming days.

data – the Fed’s preferred gauge of inflation – is also due on Friday and is likely to factor into the central bank’s plans to cut interest rates further.

Beyond the Fed, central bank meetings in Switzerland and Sweden are expected to produce interest rate cuts this week, with most global central banks set to start easing cycles in tandem with the Fed.

With the exception of gold, prices of other precious metals lagged behind. was down 0.6% at $974.10 an ounce, while it was down 0.2% at $31.430 an ounce.

Copper prices rise, China in focus

Among industrial metals, copper prices rose cautiously on Monday, although optimism over lower rates also boosted the red metal in recent sessions.

The focus was squarely on more stimulus in China, the top importer, after the People’s Bank of China unexpectedly cut repo rates to further boost local liquidity.

The London Metal Exchange benchmark rose 0.3% to $9,525.0 a tonne, while on the month it rose 0.3% to $4.3420 a pound.

A slew of purchasing managers’ index readings from around the globe follow this week, providing more clues about trade activity, particularly manufacturing.