Gold hits record high on rate cut bets, Trump assassination attempt by Investing.com

Investing.com– Gold prices hit record highs in Asian trade on Monday amid bets that the Federal Reserve will cut interest rates by a wider margin later this week.

Reports of a second assassination attempt on Republican presidential candidate Donald Trump also prompted some calls for safe havens, although Trump appeared to be unharmed, and the attacker was arrested.

Asian trading volumes were somewhat limited due to market holidays in Japan, China and South Korea.

U.S. crude rose 0.4% to a record high of $2,589.02 an ounce, while December expiration rose 0.1% to $2,613.70 an ounce.

Gold benefits from lower rate bets as Fed looms

A softer gold allowed for more strength in prices, as markets await the Fed meeting.

The central bank is widely expected on Wednesday, though markets are divided between cutting 25 or 50 basis points.

Markets have split exactly 50% with bets on a bigger cut due to concerns about weakness in the labor market.

The central bank is also expected to begin an easing cycle from this week, with analysts expecting at least a 100 bps rate cut by the end of the year.

Lower rates bode well for precious metals, given that they reduce the opportunity cost of investing in non-yielding assets.

An ounce rose 0.4% to $1,004.80, while rose 0.8% to $31.332 an ounce.

Trump's assassination attempt spurs some safe haven calls

Gold saw some safe haven demand after reports of a second assassination attempt on Trump, this time at his golf course in Florida.

But the attempt was foiled by Secret Service agents in an alleged gunfight with the assailant, who was later arrested by authorities. Trump remained unharmed during the event, as noted in a message on his fundraising website.

Copper prices steady after weak Chinese data

Among industrial metals, copper prices benefited from a softer dollar. But gains in the red metal were held back by weak economic readings from China, the world's biggest copper importer.

The benchmark rose 0.1% to $9,276.0 a tonne on the London Metal Exchange, after gaining 0.1% for the month to $4.2225 a pound.

The weekend showed a string of data releases from China and rose less than expected in August, while rising and falling.

The readings have raised concerns about an economic slowdown in the country, which could bode poorly for copper appetite. But ANZ analysts said the government may now have more motivation to unveil stimulus measures.