Investing.com — Gold prices remained near record highs in Asian trading on Wednesday, reversing some recent losses as traders continued to bet the Federal Reserve would cut interest rates further.
The yellow metal hit record highs in September but has since remained in the low-to-mid $2,600 per ounce range as traders priced in a slower pace of Fed rate cuts. The dollar hit a two-month high on this front, putting pressure on metals markets.
But markets remained confident that US yields will still decline gradually, offering more upside potential for metals and other non-yielding assets. This left gold close to recent peaks.
rose 0.2% to $2,667.072 per ounce, while the December expiration rose 0.2% to $2,83.95 per ounce at 00:39 ET (04:39 GMT).
Gold reaches below record highs
Spot gold has been largely within the range over the past three weeks, struggling to reach new highs as markets priced in a higher final rate for the Fed.
Spot prices reached a record high of $2,685.96 per ounce at the end of September.
While fears of worsening geopolitical conditions in the Middle East fueled demand for safe-haven bullion, this was mitigated by a stronger , following signs of resilience in the US economy.
Still, gold is posting stellar gains so far this year after hitting a series of record highs on bets that U.S. interest rates will eventually fall.
Traders were pricing in a 91.1% chance that the Fed would cut rates by 25 basis points in November, a smaller cut than September’s 50 basis point cut. Traders also saw there was a slim chance that rates would remain unchanged.
Other precious metals rose on Wednesday as the dollar retreated from recent two-month highs. rose 0.9% to $1,005.30 per ounce, while the price rose 0.2% to $31.812 per ounce.
Copper remains stable while uncertainty in China leads to major losses
Among industrial metals, copper prices held steady after posting steep losses in recent sessions amid doubts over China’s recent stimulus measures.
The benchmark on the London Metal Exchange rose 0.6% to $9,586.50 a tonne, while December rose 0.4% to $4.3603 a pound.
Copper prices fell in recent sessions as traders were largely underwhelmed by top importer China’s recent stimulus measures, especially as Beijing withheld details on the size and timing of the planned measures.
Weak economic data from China also weighed in, with recent data showing disinflation continuing while the country’s key exports fell.
