Gold advanced early Monday back over the $2900 threshold on a softer dollar and concerns over President Trump’s threatened “reciprocal tariffs.”
The yellow metal has risen on haven since U.S. President Donald Trump announced new tariffs against some of the country’s trading partners and because of his stated policies on immigration, trade, the Middle East.
April gold futures rose 0.5% last week to settle at $2,900.70 an ounce on Comex, though the most-active contract declined 1.5% Friday. Bullion increased 7.3% last month after dropping 1.5% in December and losing 2.5% in November. The metal gained 27% in 2024, its biggest annual gain since 2010. The April contract is currently up $9.30 (+0.32%) an ounce to $2910.00 and the DG spot price is $2903.20.
Electronic trading for Sunday and Monday will post Tuesday because most U.S. financial markets and the federal government are closed Monday for the Presidents Day holiday.
Speculators cut their bullish bets on gold to a four-week low in the week ended Feb. 11, according to the latest Commitments of Traders report from the Commodities Futures Trading Commission, which came out Friday.
Investors are also keeping a close eye on the Federal Reserve’s plans for monetary policy. Fed Chairman Jerome Powell said in congressional testimony last week that the central bank isn’t in a rush to cut rates. High interest rates are considered bearish for gold, while low rates and rate cuts are bullish.
Fed interest rate increases, which began in 2022, were designed to combat high inflation. The central bank has said it closely watches inflation and labor market data when setting monetary policy.
Most investors aren’t pricing in a Fed rate reduction until July, according to investors tracked by the CME FedWatch Tool, though Fed policymakers had been widely expected to continue a series of interest rate cuts that began last year into 2025. About 97.5% expect rates to remain unchanged in March, compared with 2.5% anticipating a 25 basis point cut. Most don’t expect a rate cut until July.
The Fed kept its benchmark interest rate at 4.25% to 4.50% last month. It was the central bank’s first policy meeting since July 2024 without a rate cut after three reductions last year. Previously, the Fed had kept rates at 5.25% to 5.50% for a year after raising them by 5.25 percentage points since March 2022 to combat inflation.
Front-month silver futures rose 1.3% last week to settle at $32.86 an ounce on Comex after the most-active March contract increased 0.4% Friday. Silver added 10% last month after dropping 6% in December and falling 5.1% in November. It gained 21% in 2024. The March contract is currently down $0.095 (-0.29%) an ounce to $32.760 and the DG spot price is $32.38.
Spot palladium rallied 0.7% last week to $993.00 an ounce but decreased 0.9% Friday. Palladium advanced 11% last month after falling 6.7% in December and sliding 12% in November. Palladium dropped 17% last year.
Spot platinum edged up 0.3% last week to $990.90 an ounce but retreated 1.3% Friday. Currently, the DG spot price is down $4.80 an ounce to $993.50.
Platinum gained 8.4% in January after losing 4.6% in December and declining 4.2% in November. Platinum slid 8.4% in 2024. The current DG spot price is down $13.70 an ounce to $987.50.
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