Gold prices saw a slight dip in Asian trading on Tuesday but continued to hover near record highs as the market increasingly anticipated a significant interest rate cut by the Federal Reserve later this week. The yellow metal had reached a record high on Monday and was trading just below that level as traders factored in a potential 50 basis point rate cut by the Fed on Wednesday. The strength in gold prices was attributed to the weakening dollar and Treasury yields. Spot gold experienced a 0.2% decline to $2,578.03 per ounce, while gold futures for December delivery dropped 0.1% to $2,605.05 per ounce by 23:56 ET (03:56 GMT). Gold Prices Supported by Expectations of 50 bps Rate Cut Spot prices hit a record of $2,589.69 an ounce on Monday as the dollar weakened on expectations of a larger rate cut. Traders perceived a 68% probability of a 50 bps rate reduction by the Fed and a 32% chance of a 25 bps cut during the upcoming Wednesday meeting, according to CME Fedwatch. Lower interest rates are favorable for gold and other precious metals as they reduce the cost of investing in assets that do not yield returns. The Fed is widely anticipated to signal the initiation of an easing cycle this week, potentially leading to interest rate reductions exceeding 100 bps by the year’s end. Additionally, gold prices saw support from increased central bank purchases this year, particularly in the emerging markets segment, resulting in stronger performance compared to other precious metals. Platinum futures edged up 0.2% to $990.50 per ounce, while silver futures stabilized around $31.145 per ounce. Copper Prices Inch Up, Focused on China Stimulus Measures Copper prices also saw minor gains on Tuesday, benefitting from a softer dollar and expectations of decreased interest rates. However, concerns over China, a major importer, persisted due to a series of discouraging economic data points for August. Benchmark copper futures on the London Metal Exchange rose by 0.1% to $9,388.50 per ton, while one-month copper futures increased by 0.3% to $4.2770 per pound. Continued weak economic indicators in China have reinforced expectations for further stimulus efforts from Beijing to prop up the economy.