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Gold prices hit a new peak in Asian trading on Monday, based in major part on investors' growing confidence that the Federal Reserve is set to implement a sizable interest rate decrease later this week, reports Investing.com.
The anticipation of lower rates, which are seen as beneficial for assets like gold that do not yield interest, has contributed substantially to the precious metals market. As it stands, spot gold edged up 0.4% to a record price of $2,589.02 per ounce. December gold futures similarly saw an increase, though slightly more modest at 0.1%, setting a price of $2,613.70 per ounce at the close.
At the end of the Fed's meeting Wednesday, rate cuts are expected to start a potential easing cycle. Some analysts are forecasting cumulative cuts that could reach at least 100 basis points by year's end.
Gold's appeal as a haven asset continued following the reports of a second assassination attempt on former President Donald Trump at his Florida golf course on Sunday. In July, after the first assassination attempt, gold also went up because it is "natural" for investors to go for a haven, Barron's reported at the time.
Amidst this financial turbulence, gold's ascent wasn't the only noteworthy movement. Platinum and silver futures also experienced a lift, marking increases of 0.4% to $1,004.80 an ounce and 0.8% to $31.332 an ounce, respectively.
The combination of economic and geopolitical uncertainties is playing a significant role in driving both seasoned and novice investors toward the security of gold.
