The prices of copper and gold surged to record highs, driven by growing optimism over potential interest rate cuts by the Federal Reserve. This sentiment has been shaping trading across financial markets, with traders refining their bets on the Fed’s anticipated pivot toward easing monetary policy.
Gold soared to an all-time high on Monday, buoyed by hopes of U.S. rate cuts. Developments in the Middle East, particularly the death of Iranian President Ebrahim Raisi in a helicopter crash, also have the potential to boost haven demand, although oil prices remained relatively stable in Asia on Monday. Raisi was considered a frontrunner to succeed Supreme Leader Ayatollah Ali Khamenei, Iran’s highest authority.
The dollar index held steady after a decline last week following data that showed U.S. inflation in April eased more than expected. This week, several Federal Reserve officials are slated to speak, including Governor Christopher Waller, who will address the U.S. economy and monetary policy.
Investors are also focused on upcoming economic activity readings in Europe, alongside inflation data releases in the UK, Canada, and Japan, which will provide further insights into global economic conditions and central bank actions.