Investing.com-- Gold prices surged to record highs in Asian trade on Monday, shrugging off easing bets on U.S. rate cuts as safe haven demand for the yellow metal remained buoyant ahead of more cues on the U.S. economy.
A rally in gold persisted even as technical indicators showed the yellow metal was squarely in overbought territory- a scenario that usually indicates limited upside potential.
But spot gold jumped as much as 0.7% on Monday to a record high of $2,353.81 an ounce, while gold futures expiring in June rose 0.8% to a record high of $2,372.45 an ounce.
Gold shrugs off easing rate cut bets, CPI data awaited
Gold prices rose as the dollar showed limited reaction to a blowout nonfarm payrolls report for March.
The report, released on Friday, showed the U.S. labor market remained strong. Such a scenario gives the Federal Reserve little impetus to begin trimming interest rates early.
But the dollar showed little strength after the reading, offering gold some more headroom to push higher. Uncertainty over U.S. rates also remained in play ahead of key consumer price index inflation data, due this Wednesday.
Traders were seen largely scaling back bets that the Fed will cut rates by as soon as June, the CME Fedwatch tool showed.
But worsening global geopolitical concerns also kept safe haven demand for gold alive. The Russia-Ukraine war continue to rage on, with new strikes on the Zaporizhzhia nuclear plant causing some alarm.
In the Middle East, concerns over a war between Iran and Israel also remained in play, although Israel was seen holding some peace talks with Hamas in Egypt.
Other precious metals advanced on Monday. Platinum futures rose 0.1% to $941.70 an ounce, while silver futures rose 1.&% to $27.965 an ounce.
Copper price edge lower from 15-mth highs
Among industrial metals, copper prices fell slightly on Monday, seeing mild profit-taking after surging to 15-month highs last week.
Three-month copper futures on the London Metal Exchange fell 0.2% to $9,333.50 a ton, while one-month U.S. copper futures fell 0.3% to $4.2287 a pound.
Copper was boosted by a string of positive economic readings from top importer China, which showed business activity in the country was picking up.
The prospect of tighter refined copper supplies also boosted prices after top Chinese refiners signaled potential production cuts.
More economic data from China is due later this week, particularly inflation and trade figures for March.