Gold prices in Asia fell on Thursday after reaching record highs, as focus shifted towards U.S. interest rate cuts and worries about a potential recession. The surge in gold prices was driven by expectations that the Federal Reserve will start cutting rates in September. However, profit-taking and a stronger dollar led to a decrease in gold prices. Spot gold dropped 0.5% to $2,500.55 an ounce, while gold futures for December decreased by 0.4% to $2,547.05 an ounce. The market is closely watching for rate cuts by the Federal Reserve, with uncertainties lingering about a possible recession. The Fed’s meeting minutes from late July revealed a leaning towards lower interest rates to combat inflation, reinforcing expectations of a September rate cut. Concerns about a weakening labor market, as indicated by revised payrolls data, have heightened worries about a potential U.S. recession. The upcoming address by Fed Chair Jerome Powell at the Jackson Hole Symposium on Friday is anticipated to provide further insights into the monetary policy direction. Lower interest rates are generally positive for gold as they reduce the opportunity cost of investing in non-yielding assets. Other precious metals also saw slight gains, following gold’s trend. Platinum futures fell 0.4% to $970.0 an ounce, while silver futures dropped 0.3% to $29.448 an ounce. In the industrial metals sector, copper prices faced challenges amid concerns about slowing U.S. growth and a potential slowdown in China. Benchmark copper futures on the London Metal Exchange stabilized at $9,262.50 a ton, while one-month copper futures declined by 0.2% to $4.1930 a pound.