🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Gold prices hit record highs above $2,350 even as rate cut bets ease

Published 08-04-2024, 09:36 am
© Reuters

Investing.com-- Gold prices surged to record highs in Asian trade on Monday, shrugging off easing bets on U.S. rate cuts as safe haven demand for the yellow metal remained buoyant ahead of more cues on the U.S. economy. 

A rally in gold persisted even as technical indicators showed the yellow metal was squarely in overbought territory- a scenario that usually indicates limited upside potential. 

But spot gold jumped as much as 0.7% on Monday to a record high of $2,353.81 an ounce, while gold futures expiring in June rose 0.8% to a record high of $2,372.45 an ounce. 

Gold shrugs off easing rate cut bets, CPI data awaited 

Gold prices rose as the dollar showed limited reaction to a blowout nonfarm payrolls report for March.

The report, released on Friday, showed the U.S. labor market remained strong. Such a scenario gives the Federal Reserve little impetus to begin trimming interest rates early.

But the dollar showed little strength after the reading, offering gold some more headroom to push higher. Uncertainty over U.S. rates also remained in play ahead of key consumer price index inflation data, due this Wednesday. 

Traders were seen largely scaling back bets that the Fed will cut rates by as soon as June, the CME Fedwatch tool showed. 

But worsening global geopolitical concerns also kept safe haven demand for gold alive. The Russia-Ukraine war continue to rage on, with new strikes on the Zaporizhzhia nuclear plant causing some alarm.

In the Middle East, concerns over a war between Iran and Israel also remained in play, although Israel was seen holding some peace talks with Hamas in Egypt. 

Other precious metals advanced on Monday. Platinum futures rose 0.1% to $941.70 an ounce, while silver futures rose 1.&% to $27.965 an ounce.

Copper price edge lower from 15-mth highs 

Among industrial metals, copper prices fell slightly on Monday, seeing mild profit-taking after surging to 15-month highs last week. 

Three-month copper futures on the London Metal Exchange fell 0.2% to $9,333.50 a ton, while one-month U.S. copper futures fell 0.3% to $4.2287 a pound. 

Copper was boosted by a string of positive economic readings from top importer China, which showed business activity in the country was picking up. 

The prospect of tighter refined copper supplies also boosted prices after top Chinese refiners signaled potential production cuts.

More economic data from China is due later this week, particularly inflation and trade figures for March.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.