Gold Prices Rise Amid Dollar Strength and Speculation Over Second Trump Presidency
Gold prices inched higher in Asian trade on Thursday, staying near record highs despite the dollar’s strength. Speculation over a potential second Trump presidency weighed on broader metal markets, while copper prices saw losses after a Chinese government briefing on property market support.
The drop in Treasury yields supported gold prices, along with expectations of interest rate cuts by major central banks. The European Central Bank is anticipated to cut rates by 25 basis points later in the day.
Spot gold rose 0.2% to $2,678.90 an ounce, while gold futures for December rose 0.1% to $2,694.40 an ounce.
Spot prices came close to a record high of $2,685.96 an ounce on Wednesday, supported by weakness in Treasury yields. The dollar fell 0.5% amid speculation of a second Trump presidency, with markets anticipating a tight race in the upcoming elections.
Trump’s policies are expected to be inflationary, which has weighed on Treasury yields and boosted the dollar to its strongest levels since early August. Meanwhile, investors are awaiting more interest rate cuts from major central banks.
In other precious metals, silver rose 0.5% to $1,012.40 an ounce, while platinum fell 0.7% to $31.760 an ounce.
On the other hand, copper prices dipped as China’s property market support cues underwhelmed investors. Benchmark copper on the London Metal Exchange fell 0.6% to $9,548.50 a ton, while December copper futures fell 0.6% to $4.3445 a pound.
China’s latest briefing on economic support plans disappointed investors, leading to extended losses in copper prices. The lack of new features and details on the implementation of support measures left investors wanting more.
Overall, gold prices are holding strong near record highs, supported by softer yields and expectations of interest rate cuts. Copper prices, on the other hand, are facing pressure due to underwhelming economic support cues from China. Investors should keep an eye on central bank decisions and economic data releases for potential impacts on their investments.