Gold prices extended their gains in Asian trade on Thursday, buoyed by expectations of interest rate cuts from the Federal Reserve, according to the Investing.com platform.
This comes after a week of weak economic data in the US that dampened the dollar and fueled investor optimism for looser monetary policy.
Spot gold rose 0.6 per cent to $2,370.40 per ounce, hovering near record highs. However, August gold futures contracts slipped slightly by 0.6 per cent to $2,389.70 per ounce.
The yellow metal built on strong gains this week as markets increasingly priced in a September rate cut by the Fed.
Additional support came from the Bank of Canada’s recent rate cut and the anticipation of a similar move by the European Central Bank. This sentiment for a global shift towards looser monetary conditions boosted gold’s appeal.
Other precious metals also advanced on Thursday. Platinum futures gained 0.6 per cent to $1,008.55 per ounce, while silver futures saw a more substantial rise of 1.6 per cent to $30.552 per ounce.
Among industrial metals, copper prices rebounded from a one-month low on Thursday, partly due to a weaker dollar. Benchmark copper futures on the London Metal Exchange rose 1.5 per cent to $10,074.50 per ton.