Investing.com – Gold prices stabilized in Asian markets today after hitting record highs this week. Due to the trend towards lower interest rates in the United States. This weakens the dollar and encourages more investment in gold.
Metal prices also rose in general. They benefited from a weaker dollar and lower bond yields. This comes despite slowing growth amid a lower market risk environment.
Spot prices rose 0.1% to $2,515.44 an ounce, while prices due in December rose 0.1% to $2,553.35 an ounce. Spot prices hit a record high of $2,531.72 an ounce on Tuesday at 00:51 ET (04:51 GMT).
Gold supports interest rate trends. Watch the Fed minutes.
Gold and other metals prices were supported by expectations that the Federal Reserve will begin cutting interest rates in September.
Investors are expecting a possible rate cut of 25 or 50 basis points, depending on the instrument.
Market focus this week is on the Fed chairman’s speech at the Jackson Hole symposium on Friday, where he is expected to reiterate the Fed’s dovish outlook. But analysts don’t think Powell has any clear expectations on his plans to cut rates.
The Federal Reserve's report is also scheduled for release in late July on the same day. After the central bank sounded dovish at the meeting,
A trend towards lower interest rates is positive for gold. This is because it reduces the opportunity cost of investing in non-yielding assets.
This mentality, along with the recent decline in the value of the dollar, is one of the main factors driving the metals market. But most of the buying will be focused on gold. Meanwhile, other precious metals have made modest gains.
It fell 0.1% to $956.25 per ounce, while it rose 0.1% to $29.538 per ounce.
Copper steadied as the market was weighed down by rising Chinese demand.
Among industrial metals, copper prices rose slightly today, continuing their recovery from recent lows amid signs of improving demand in China, a major importer.
On the London Metal Exchange, it rose 0.4% to $9,222.50 per tonne, while it rose 0.2% to $2,554.10 per pound.
Data released earlier this week showed China’s copper exports fell in July, as domestic buyers took advantage of recent weakness in copper prices.
The data shows an improvement in demand for copper in China. This comes after the country's copper imports fell for two consecutive months.
But signs of continued economic weakness in China continued to limit overall copper gains. China, the world’s largest copper importer, faces challenges in its post-Covid-19 recovery. For nearly two years