Investing.com — Gold prices fell slightly in Asian trading on Monday, plunging from record highs as strong U.S. payrolls data fueled bets on a smaller rate cut from the Federal Reserve.
The yellow metal fell from record highs as dollar and U.S. Treasury yields soared on strong payroll data, prompting traders to largely scale back bets that the Fed would cut rates again by 50 basis points.
The focus this week is on a slew of signals from the Fed and the US economy, both of which are likely to play a role in interest rates.
fell 0.2% to $2,647.64 per ounce, while the December expiration fell slightly to $2,667.10 per ounce at 00:16 ET (04:16 GMT).
Gold hit by bets on smaller rate cuts
Bullion prices soared to record highs in September after the Fed cut rates by 50 basis points and signaled the start of an easing cycle.
However, stronger-than-expected data on Friday raised expectations that the Fed will cut rates by just 25 basis points at its November meeting. showed that traders estimate a greater than 90% chance of such a scenario.
Traders were also seen positioning for a higher final rate for the Fed, creating a less attractive environment for metals prices. The price rose after Friday’s data.
The focus this week is on speeches from a series of Fed officials, as well as the September Fed meeting, for more clues about rates.
Inflation data due later this week is also likely to play a role in the interest rate outlook.
Other precious metals followed gold’s decline. fell 0.5% to $997.05 per ounce, while the price fell 0.1% to $32,360 per ounce.
Copper remains stable, with Chinese stimulus in focus
Among industrial metals, copper prices held steady on Monday after last week’s wild swings, although they still remained relatively optimistic about the prospect of more stimulus in top importer China.
The benchmark on the London Metal Exchange was steady at $9,972.0 per tonne, while rising 0.2% in the month to $4.5728 per pound.
Copper was initially supported by China announcing more stimulus measures in late September. But trading volumes in the red metal have declined over the past week due to China’s week-long Golden Week.
Chinese markets will reopen on Tuesday, while the government will also hold a briefing on more stimulus measures.
