Investing.com-- Gold prices rose in Asian trade on Thursday, remaining close to record highs as weakness in the dollar, amid increased bets on U.S. interest rate cuts, supported the yellow metal.
Precious metal markets also caught some safe haven demand as reports pointed to potentially worsening trade relations between the U.S. and China.
Spot gold rose 0.3% to $2,466.18 an ounce, while gold futures expiring in August rose 0.4% to $2,469.55 an ounce by 00:58 ET (04:58 GMT). Spot prices raced to a record high of $2,483.78 an ounce.
Gold buoyed by rate cut hopes, safe haven demand
The yellow metal was sitting on strong gains over the past three sessions, after soft U.S. inflation data and some dovish comments from the Federal Reserve ratcheted up bets on an interest rate cut.
Traders were seen pricing in a 94% chance the Fed will cut rates by 25 basis points in September, with a small chance for a 50 basis point cut, according to CME Fedwatch.
This notion battered the dollar, putting the greenback at a near four-month low, which also aided commodities priced in the dollar.
Additionally gold saw increased safe haven demand after a Bloomberg report said the U.S. was considering stricter trade restrictions on China, especially against the country’s technology and chipmaking sectors.
Such a move could draw ire from Beijing and spark a renewed trade war between the two countries.
Comments from U.S. Republican presidential candidate Donald Trump, that Taiwan should pay for U.S. defense supplies, also kept concerns over China in play.
Other precious metals also advanced tracking gold. Platinum futures rose 0.2% to $1,011.75 an ounce, while silver futures jumped 0.7% to $30.573 an ounce.
Copper dips on China jitters
Among industrial metals, copper prices sank as worsening sentiment towards China dented the red metal’s outlook. China is the world’s biggest copper importer, with any economic headwinds for the country presenting a dour outlook for copper demand.
Benchmark copper futures on the London Metal Exchange fell 0.2% to $9,613.50 a tonne, while one-month copper futures sank 0.4% to $4.3985 a pound.
In addition to concerns over a Chinese trade war, copper markets were also contending with weak economic data from the country. Gross domestic product data released earlier this week showed the economy grew less than expected in the second quarter.
Focus is now on the Third Plenum of the Chinese Communist Party, amid growing pressure on Beijing to release more stimulus.
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