Yen at 8-month high, gold at all-time high

Gold

Gold prices reached a record high in Asian trading on Monday, driven by increasing speculation that the Federal Reserve will implement a larger-than-expected interest rate cut later this week.

Additionally, news of a second assassination attempt on Republican presidential nominee Donald Trump bolstered demand for safe-haven assets, though Trump was unharmed, and the attacker was taken into custody.

Spot gold rose to hit a record high of $2,589.02 per ounce, while December gold futures edged up 0.1% to $2,613.70 per ounce.

Copper prices remained steady, supported by a weaker dollar. However, the red metal's gains were capped by a series of disappointing economic data from China, the largest importer of copper.

A series of data released from China over the weekend revealed that industrial production and retail sales grew at a slower pace than anticipated in August. Additionally, unemployment increased, and housing prices declined.

Yen

The Japanese yen emerged as the top performer among Asian currencies, with the USD/JPY pair dropping 0.6% to 140.04 yen—its lowest level since early January. The pair briefly dipped below 140 for the first time since 2023.

The yen's strength was partly driven by reduced trading volumes in local markets. However, traders also flocked to the yen ahead of a Bank of Japan meeting on Friday, where the central bank is expected to adopt a more hawkish stance on interest rates.