Gold prices hit historic highs above $2,350, even as bets on rate cuts relax

Gold prices rose to record highs in Asian trade on Monday, despite softening forecasts on US rate cuts, as safe haven demand for the yellow metal remained strong ahead of more economic data from the US.

Gold rallied despite technical signs showing the yellow metal was overbought--a position that often suggests limited upside potential.

However, spot gold surged as much as 0.7% on Monday to a record high of $2,353.81 per ounce, while gold futures expiring in June rose 0.8% to a record high of $2,372.45 per ounce.

Gold prices increased as the dollar showed no reaction to a strong nonfarm payrolls report in March.

The survey, released on Friday, revealed that the U.S. labor market remained robust. Such a scenario provides little encouragement for the Federal Reserve to begin lowering interest rates soon.

However, the dollar exhibited minimal strength following the report, giving gold more leeway to move higher. Uncertainty surrounding US rates remained in play ahead of important consumer price index inflation data, which is due this Wednesday.

The CME Fedwatch tool revealed that traders were generally reducing their wagers that the Fed would lower interest rates as early as June.

However, worsening global geopolitical concerns have kept safe haven demand for gold strong. The Russia-Ukraine war rages on, with additional strikes on the Zaporizhzhia nuclear plant raising concerns.

Concerns for a confrontation between Iran and Israel persisted in the Middle East, despite Israel's appearance in Egypt to hold peace negotiations with Hamas.

Other precious metals rose on Monday. Platinum futures increased 0.1% to $941.70 per ounce, while silver futures rose 1.0% to $27.965 per ounce.

Copper prices move lower from 15-month highs.
Copper prices dipped marginally on Monday, reflecting minor profit-taking after reaching 15-month highs the previous week.

The London Metal Exchange's three-month copper futures lost 0.2% to $9,333.50 per ton, while one-month US copper prices fell 0.3% to $4.2287 a pound.

Copper was supported by a spate of favorable economic readings from top importer China, indicating that business activity in the country was improving.

The likelihood of tighter refined copper supplies bolstered prices after top Chinese refiners indicated possible production reduction.

China will release more economic data later this week, including March inflation and trade figures.