Gold prices extended their record-high run into Asian trade on Wednesday as persistent optimism over lower U.S. interest rates weighed on the dollar, with more cues on the U.S. economy due in the coming days. 

Among industrial metals, copper prices fell slightly after racing to two-month highs on optimism over more stimulus measures in top importer China. 

Broader metal prices were buoyed by recent declines in the dollar, which sank to a 14-month low after the Federal Reserve cut interest rates last week. The central bank also announced the start of an easing cycle that is expected to see rates fall further in the coming months. 

Spot gold rose 0.3% to a record high of $2,670.52 an ounce, while gold futures expiring in December hit a peak of $2,694.75 an ounce. 

Gold rises on rate cut cheer; more cues awaited 

The prospect of lower interest rates was a key support point for gold, as traders priced in a lower opportunity cost for investing in non-yielding assets. 

A slew of Fed speakers are set to offer up more cues on interest rates this week, especially an address by Chair Jerome Powell on Thursday.

PCE price index data- the Fed’s preferred inflation gauge- is due on Friday and is also expected to factor into the central bank’s plans for rates.

Citi analysts said the Fed is likely to lower rates by a total of 125 basis points after a 50 bps reduction last week. Goldman Sachs expects cuts of 25 bps during every meeting from November and until June 2025.