Investing.com – Amid growing speculation that the Federal Reserve will lower interest rates by a larger margin later this week, gold prices reached a record high in Asian trade on Monday.
There was a surge in demand for safe havens following reports of a second attempt on the life of Republican presidential nominee Donald Trump. However, the assailant was apprehended and Trump seemed unharmed.
Asia’s trading volumes were somewhat constrained by South Korea, China, and Japan’s market holidays.
While gold futures expiring in December rose 0.1% to $2,613.70 an ounce, spot gold increased 0.4% to a record high of $2,589.02 an ounce.
Markets are divided over whether the central bank will lower interest rates by 25 or 50 basis points on Wednesday, even though a cut is widely anticipated.
According to CME Fedwatch, markets were evenly split between the two options. Bets on a larger cut resurfaced due to worries about the labour market’s fragility.
This week is also anticipated to mark the start of the central bank’s easing cycle, with analysts projecting at least 100 basis points of rate reductions by year’s end.
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