Investing.com– Gold prices hit a record high in Asian trade on Monday amid growing speculation that the Federal Reserve will deliver a big interest rate cut later this week.
Demand for safe havens also increased amid reports of a second assassination attempt on Republican presidential candidate Donald Trump, though Trump was unharmed and the attacker was captured.
Asian trading volumes were somewhat limited due to market holidays in Japan, China and South Korea.
rose 0.4% to a record high of $2,589.02 an ounce, while gold ended in December rose 0.1% to $2,613.70 an ounce.
Gold benefits from interest rate cuts amid looming Fed move
The dovish stance further strengthened gold prices, as the market awaits the Fed meeting.
The central bank is expected to cut interest rates on Wednesday, although the market is divided between a 25 or 50 basis point reduction.
The market was exactly 50% apart on both options, with bets on a bigger cut gaining momentum again on concerns about weakness in the labour market.
The central bank is also expected to begin a rate easing cycle this week, with analysts expecting rates to be cut by at least 100 basis points by the end of the year.
Low interest rates are a good thing for precious metals, as they reduce the opportunity cost of investing in non-yielding assets.
rose 0.4% to $1,004.80 an ounce, while gold rose 0.8% to $31.332 an ounce.
Trump assassination attempt sparks demand for safe haven among some
Following reports of a second assassination attempt on Trump, this time at his golf course in Florida, gold saw safe-haven demand.
But Secret Service agents foiled the attempt in a reported shootout with the attacker, who was later captured by authorities. Trump was unharmed during the incident, he said in a message on his fundraising website.
Copper prices steady after weak Chinese data
Among industrial metals, copper prices benefited from a softer dollar. But weak economic conditions in China, the world's biggest copper importer, capped the gains of the red metal.
The benchmark on the London Metal Exchange rose 0.1% to $9,276.0 per tonne, while the one-month benchmark rose 0.1% to $4.2225 per pound.
Data released from China over the weekend showed that growth and decline in August were lower than expected, while there were also increases and decreases.
These figures have raised concerns of an economic slowdown in the country, which could be a bad sign for copper demand. But ANZ analysts say the government may now be more motivated to issue stimulus measures.