Gold Prices Hit Record High Amid Fed Rate Cut Bets

Gold prices reached a record high in Asian trade on Monday as expectations grew that the Federal Reserve would implement a significant interest rate cut later this week.

Reports of a second assassination attempt on Republican presidential nominee Donald Trump also boosted demand for safe havens, although Trump was unharmed, and the assailant was captured.

Asian trading volumes were somewhat limited due to market holidays in Japan, China, and South Korea.

Spot gold increased by 0.4% to a record high of $2,589.02 per ounce, while December gold futures rose by 0.1% to $2,613.70 per ounce.

Gold Benefits from Rate Cut Bets as Fed Looms

A weaker dollar contributed to strength in gold prices, as markets awaited an upcoming Fed meeting.

The central bank is anticipated to cut interest rates on Wednesday, with the market divided between a 25 or 50 basis point reduction.

The CME Fedwatch currently shows an even split between the two options, with increased bets on a larger cut based on concerns over labor market weakness.

Analysts expect the central bank to start an easing cycle this week, predicting at least 100 basis points of rate cuts by the end of the year.

Lower interest rates favor precious metals by reducing the opportunity cost of holding non-yielding assets. Platinum futures rose 0.4% to $1,004.80 per ounce, and silver futures increased by 0.8% to $31.332 per ounce.

Trump Assassination Attempt Spurs Some Safe Haven Demand

Gold experienced heightened demand for safe havens following reports of a second assassination attempt on Trump at his golf course in Florida.

Secret Service agents thwarted the attempt in a reported shootout with the assailant, who was later arrested. Trump confirmed his safety in a message on his fundraising website.

Copper Prices Steady After Weak Chinese Data

Copper prices were steady, benefiting from a softer dollar, but gains were limited by disappointing economic data from China, the largest copper importer.

Benchmark copper futures on the London Metal Exchange rose by 0.1% to $9,276.0 per ton, while one-month copper futures also rose 0.1% to $4.2225 per pound.

Recent data released from China indicated slower-than-expected growth in industrial production and retail sales for August, alongside rising unemployment and declining house prices. These readings intensified concerns over a potential economic slowdown, which could negatively impact China's demand for copper. However, ANZ analysts suggested that the government might now be more motivated to introduce stimulus measures.