Gold prices fell slightly in Asian trading on Monday but remained close to last week’s record highs, with expectations of U.S. interest rate cuts weighing on the dollar and providing a better outlook for metal markets.

• The yellow metal reached record highs last week, leading gains in metal markets as traders welcomed cautious comments from the Federal Reserve. Haven demand also supported gold prices as ceasefire talks in the Middle East yielded little results, and military actions in the region persisted, along with continued skirmishes between Russia and Ukraine.

• Spot gold fell 0.1% to $2,509.88 an ounce, while gold futures expiring in December dropped 0.1% to $2,545.10 an ounce. Spot prices reached a record high of $2,532.05 an ounce last week.

• Gains in the yellow metal were driven by the dollar’s decline to its lowest level in 13 months, amid growing conviction that the Federal Reserve will begin cutting interest rates in September. Fed Chair Jerome Powell's remarks on Friday further reinforced this outlook, as he stated that rate cuts were imminent and that further cooling in the labor market was unwelcome.

• The potential for lower interest rates is positive for gold and other precious metals, as it reduces the opportunity cost of investing in non-yielding assets.

• On the other hand, other precious metals recorded some gains last week but retreated on Monday. Platinum futures fell 0.6% to $965.45 an ounce, while silver futures dropped 0.4% to $30.145 an ounce.

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