Investing.com – Gold prices hit a new high in Asian trading on Monday, extending last week’s rally as uncertainty over the US election and expectations of Israeli retaliation against Iran boosted demand for safe asset.
Other precious metals also rose, with silver hitting a 12-year high and industrial metals led by copper also strengthened after interest rate cuts in China, the biggest importer.
Metals prices rose despite the dollar still near its highest levels since early August on expectations of a slower Fed rate cut.
rose 0.4% to $2,732.86 an ounce, while the December rate rose 0.6% to $2,747.70 an ounce.
Gold and silver rise in price due to demand for a safe haven
Precious metals prices rose mainly due to increased demand for safe-haven assets, especially after reports emerged over the weekend that Israel was planning to hit Iran following a missile strike earlier this month. this.
Ahead of the US presidential election in early November, traders are also leaning towards safe havens.
Recent polls show Donald Trump and Kamala Harris nearly neck and neck, although markets are predicting a Trump victory.
Safe-haven demand for precious metals helped gain ground amid signs of strength in the US economy as traders pressed for a slower pace of Fed rate cuts. The Fed is widely expected to cut rates by 25 basis points in November.
It jumped 3.1% to $34,328 an ounce, its highest since September 2012, while contracts rose 0.6% to $1,031.15 an ounce.
Copper rises amid falling interest rates in China
Among industrial metals, copper prices rose after a slightly bigger-than-expected rate cut by top importer China.
The benchmark price on the London Metal Exchange rose 1.2% to $9,746.0 per tonne, and the December price rose 1.2% to $4.4450 per tonne.
The People’s Bank of China cut a little more than expected on Monday, further supporting the economy after the recent round of stimulus measures in Beijing.
However, traders were left somewhat disappointed by earlier signs of encouragement as Beijing did not provide key details on the timing and scope of the planned measures.
As a result, copper has suffered significant losses over the past week.
2024-10-21 04:20:00
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