Gold Prices Soar to Record High Amid Rate Cut Expectations and Trump Assassination Attempt

Gold prices surged to unprecedented levels during Asian trading on Monday, driven by increasing speculation that the Federal Reserve will implement a significant interest rate cut in its upcoming meeting.

The market also saw heightened interest in safe-haven assets following reports of a second assassination attempt on Republican presidential candidate Donald Trump. Fortunately, Trump was unharmed, and the assailant was apprehended.

Trading activity in Asia was somewhat muted due to market holidays in Japan, China, and South Korea. Gold saw a 0.4% increase, reaching a historic high of $2,589.02 per ounce, while December futures climbed 0.1% to $2,613.70 per ounce.

### Growing Anticipation for Rate Cuts

A weaker dollar contributed to the rise in gold prices as traders eagerly awaited the Fed’s announcement. The central bank is largely expected to announce a rate cut on Wednesday, with opinions divided between a 25 or 50 basis point reduction. Current market sentiment leans towards a larger cut, driven by concerns regarding slowdowns in the labor market.

Analysts anticipate the beginning of an easing cycle this week, with expectations of at least 100 basis points in rate cuts by year-end. Lower interest rates typically benefit precious metals by reducing the opportunity cost of holding non-yielding assets. Additionally, silver rose 0.4% to $1,004.80 per ounce, while platinum increased by 0.8% to $31.332 per ounce.

### Safe Haven Demand amid Political Turmoil

The report of the assassination attempt on Trump, which occurred at his golf course in Florida, generated some additional demand for gold as a safe haven. Secret Service agents thwarted the attack in a reported shootout, leading to the assailant’s capture. Following the incident, Trump confirmed his safety via a message on his fundraising site.

### Steady Copper Prices amid Global Concerns

In the industrial metals sector, copper prices remained stable, aided by a weaker dollar. However, gains were tempered by disappointing economic data from China, the largest importer of copper. The benchmark price on the London Metal Exchange rose 0.1% to $9,276.0 per ton, while one-month futures also increased by 0.1% to $4.2225 per pound.

Recent data from China indicated that certain economic indicators fell short of expectations in August, raising concerns about a slowdown that could negatively impact the nation’s copper demand. Nonetheless, analysts from ANZ suggest that these developments might prompt the Chinese government to initiate stimulus measures.