Investing.com– Gold prices hit a record high in Asian trade as the yellow metal benefited from persistent cheer over lower U.S. interest rates, with uncertainty before a storm of cues this week also buoying prices.
The yellow metal had surged to record highs last week after the Federal Reserve cut interest rates, and largely carried over this momentum. A softer dollar and Treasury yields also benefited broader metal markets.
rose 0.3% to a record high of $2,631.19 an ounce, while rose 0.4% to $2,655.80 an ounce.
Gold buoyed by rate cut cheer; more cues on tap
The yellow metal rose as the Fed cut rates by 50 basis points and signaled the beginning of an easing cycle that analysts expect to bring rates lower by as much as 125 bps this year.
Lower rates bode well for gold, given that they reduce the opportunity cost of investing in non-yielding assets. Lower rates also reduce the appeal of the and debt.
More signals from the Fed and the U.S. economy are due this week. A slew of Fed members, most notably , are set to speak in the coming days.
data- the Fed’s preferred inflation gauge- is also due on Friday, and is likely to factor into the central bank’s plans to cut rates further.
Beyond the Fed, central bank meetings in Switzerland and Sweden are both expected to yield interest rate cuts this week, with most global central banks set to kick off easing cycles in tandem with the Fed.
Barring gold, other precious metal prices lagged. fell 0.6% to $974.10 an ounce, while fell 0.2% to $31.430 an ounce.
Copper prices edge higher, China in focus
Among industrial metals, copper prices rose gingerly on Monday, although optimism over lower rates also boosted the red metal in recent sessions.
Focus was squarely on more stimulus measures in top importer China, after the People’s Bank of China unexpectedly cut repo rates to further boost local liquidity.
Benchmark on the London Metal Exchange rose 0.3% to $9,525.0 a ton, while one-month rose 0.3% to $4.3420 a pound.
A slew of purchasing managers index readings from across the globe are due this week, offering up more cues on business activity, specifically manufacturing.
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