Gold nears record high as rate cuts loom

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.

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