Gold prices inched up in Asian trading on Friday as the U.S. dollar weakened following a substantial interest rate cut by the Federal Reserve, with investors optimistic about the possibility of further rate reductions. Copper prices also saw an increase as reports suggested that China, the top importer, might introduce more supportive measures for the property market, following the decision by the People’s Bank of China to maintain benchmark lending rates. Gold initially showed a negative reaction to the rate cut on Wednesday, as Federal Reserve Chair Jerome Powell provided a less dovish outlook for long-term rates. However, the markets later embraced the idea of lower rates in the short term, leading to a decline in the dollar and a boost in risk assets. Spot gold was up by 0.3% to $2,593.31 per ounce, while gold futures expiring in December rose by 0.2% to $2,618.40 per ounce by 00:43 ET (04:43 GMT). The surge in gold prices was also supported by escalating tensions in the Middle East, after reports emerged that Israel had allegedly sabotaged electronic devices used by Hezbollah, prompting vows of retaliation. Gold is on track for weekly gains as the Federal Reserve embarks on an easing cycle. Spot prices are expected to increase by approximately 0.6% this week, as the Federal Reserve initiated rate cuts that could total up to 125 basis points by the end of the year. The central bank’s decision to reduce rates by 50 bps, the upper end of market expectations, raised concerns about a potential slowdown in U.S. economic growth, which reinforced the demand for gold as a safe-haven asset. Lower interest rates typically benefit gold as they reduce the opportunity cost of holding the precious metal. Platinum and silver prices remained relatively stagnant this week, with platinum futures stabilizing at $989.55 per ounce and silver futures dipping by 0.3% to $31.34 per ounce. Meanwhile, copper futures on the London Metal Exchange rose by 0.5% to $9,582.50 a ton, with one-month copper futures increasing by 0.7% to $4.3788 a pound. The rise in copper prices was driven by reports that China might ease restrictions on home purchases to stimulate the housing market, providing a potential boost to the struggling property sector. Despite the hopes for more stimulus measures, the decision by the People’s Bank of China to keep its benchmark loan prime rate unchanged on Friday disappointed some traders who were anticipating further rate cuts to bolster the country’s sluggish economic growth. Calls for additional stimulus from Beijing have intensified in recent weeks, particularly in light of weak economic indicators for August.