Investing.com — Gold prices rose in Asian trading Thursday, holding near record highs as dollar weakness amid increased bets on U.S. interest rate cuts supported the yellow metal.
Precious metals markets also saw some safe-haven demand as reports suggested US-China trade ties could deteriorate.
rose 0.3% to $2,466.18 per ounce, while the August maturity rose 0.4% to $2,469.55 per ounce at 00:58 ET (04:58 GMT). Spot prices rose to a record high of $2,483.78 per ounce.
Gold supported by hopes for interest rate cuts and demand for safe havens
The yellow metal has posted strong gains over the past three sessions as dovish US inflation data and some dovish comments from the Federal Reserve increased bets on a rate cut.
Traders were pricing in a 94% chance that the Fed would cut rates by 25 basis points in September, with a slim chance of a 50 basis point cut.
This idea negatively impacted the , leaving the dollar at a four-month low, which also benefited dollar-priced commodities.
Additionally, gold saw safe-haven demand increase after a Bloomberg report said the US was considering stricter trade restrictions on China, especially against the country’s technology and chip manufacturing sectors.
Such a move could anger Beijing and spark a new trade war between the two countries.
Comments by US Republican presidential candidate Donald Trump that Taiwan should pay for US defense supplies also fueled concerns about China.
Other precious metals also provided better tracking of gold. rose 0.2% to $1,011.75 per ounce, while the price rose 0.7% to $30.573 per ounce.
Copper drops on Chinese jitters
Among industrial metals, copper prices fell as deteriorating sentiment towards China hurt the outlook for the red metal. China is the world’s largest copper importer, and any economic headwinds for the country spell bleak prospects for copper demand.
The benchmark on the London Metal Exchange fell 0.2% to $9,613.50 per tonne, down 0.4% in one month to $4.3985 per pound.
In addition to concerns about a Chinese trade war, copper markets also struggled with weak economic data from the country. Data released earlier this week showed the economy grew less than expected in the second quarter.
The focus is now on the Chinese Communist Party’s third plenum, as pressure mounts on Beijing to release more stimulus measures.
