Gold prices reach record highs surpassing $2,350 despite diminishing expectations for rate cuts.

Gold prices surged to record highs in Asian trading on Monday, defying easing expectations for U.S. rate cuts as demand for the yellow metal as a safe haven remained robust ahead of further insights into the U.S. economy.

The rally in gold persisted despite technical indicators indicating that the yellow metal was firmly in overbought territory, typically signaling limited upside potential.

Spot gold jumped as much as 0.7% on Monday to reach a record high of $2,353.81 per ounce, while gold futures expiring in June rose 0.8% to hit a record high of $2,372.45 per ounce.

Gold shrugged off decreasing bets on rate cuts, with anticipation for CPI data awaiting. Prices rose as the dollar showed minimal reaction to a strong nonfarm payrolls report for March. The report, released on Friday, indicated continued strength in the U.S. labor market, offering little incentive for the Federal Reserve to initiate early interest rate reductions.

Despite this, the dollar’s limited strength following the report provided additional room for gold to rise. Uncertainty persisted regarding U.S. rates ahead of key consumer price index inflation data scheduled for release on Wednesday.

Traders were observed scaling back bets on the Fed cutting rates as early as June, according to the CME Fedwatch tool.

Nevertheless, mounting global geopolitical concerns sustained safe haven demand for gold. The ongoing Russia-Ukraine conflict, with recent strikes on the Zaporizhzhia nuclear plant, raised alarm. In the Middle East, worries about potential conflict between Iran and Israel lingered, although Israel engaged in peace talks with Hamas in Egypt.

Other precious metals also saw gains on Monday. Platinum futures increased by 0.1% to $941.70 per ounce, while silver futures surged by 1.5% to $27.965 per ounce.

Copper prices, on the other hand, edged lower from their 15-month highs. Among industrial metals, copper prices experienced slight profit-taking on Monday after surging last week. Three-month copper futures on the London Metal Exchange fell 0.2% to $9,333.50 per ton, while one-month U.S. copper futures dropped 0.3% to $4.2287 per pound.

Copper received a boost from positive economic indicators from top importer China, signaling an uptick in business activity. Additionally, the prospect of tighter refined copper supplies contributed to price increases after leading Chinese refiners hinted at potential production cuts.

More economic data from China, particularly inflation and trade figures for March, is expected later this week.