Gold prices reach record high on rate cut bets and Trump incident
Gold prices hit a record high in Asian trade on Monday as investors anticipated a larger interest rate cut by the Federal Reserve later in the week. The possibility of a 25 or 50 basis point cut has divided markets, with concerns over weakness in the labor market leading to bets on a bigger cut. Analysts expect the Fed to kick off an easing cycle this week, with at least 100 basis points of rate cuts expected by the end of the year. Lower interest rates make non-yielding assets like precious metals more attractive to investors, boosting gold prices to new heights.
Copper prices steady amidst weak Chinese data
Copper prices, supported by a weaker dollar, remained steady despite a series of disappointing economic data from China, the largest importer of copper. While the softer dollar provided some lift to copper prices, concerns over the Chinese economy, as indicated by lower-than-expected growth in industrial output, retail sales, fixed-asset investment, and a rise in unemployment, weighed on the red metal. Analysts note that the weak data could prompt the Chinese government to introduce stimulus measures to support the economy and, in turn, the demand for copper.
