Gold eases early Monday as the dollar firms, after rallying last week on concerns about the global economic outlook. The yellow metal sticking just above the $2900 line.
Investors flocked to haven assets on economic fears. Prices have been elevated on swings in U.S. trade policy. Prices fell Friday after a key U.S. jobs report last week showed payrolls grew less than expected in February.
April gold futures rose 2.3% last week to settle at $2,914.10 an ounce on Comex though the most-active contract lost 0.4% Friday. Bullion rose 0.5% last month after gaining 7.3% in January and dropping 1.5% in December. The metal rose 27% in 2024, its biggest annual gain since 2010. The April contract is currently down $6.3 (-0.22%) an ounce to $2907.80 and the DG spot price is $2904.20.
Nonfarm payrolls rose by a seasonally adjusted 151,000 last month, less than the 170,000 consensus forecast by economists, but more than the 125,000 in January, government data released Friday showed. The unemployment rate edged up to 4.1%.
The Federal Reserve has said it closely watches both inflation and the labor market when determining monetary policy, so lackluster numbers may have some bearing on the central bank’s next moves on interest rates. Interest rate cuts are bullish for gold, making the yellow metal a more attractive investment than some other assets.
Fed Chairman Jerome Powell said Friday that “despite elevated levels of uncertainty, the U.S. economy continues to be in a good place.” He said The Fed doesn’t need to be in a hurry to cut rates.
The Fed’s favorite inflation measure came out in late February and showed that core prices of goods were in line with expectations. The next inflation report – the U.S. consumer price index – comes out Wednesday, followed by the producer price index on Thursday. China’s national consumer price index turned negative in February for the first time last month, according to data published Sunday.
The Fed cut rates three times in 2024, but most investors aren’t pricing in a Fed rate reduction until June, according to investors tracked by the CME FedWatch Tool. About 97% expect rates to remain unchanged in March, compared with 3% anticipating a 25 basis point cut.
The Fed kept its benchmark interest rate at 4.25% to 4.50% in January. It was the central bank’s first policy meeting since July 2024 without a rate cut. The Fed began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts last year. Previously, the Fed had kept rates at 5.25% to 5.50% for a year.
Front-month silver futures added 4.2% last week to settle at $32.81 an ounce on Comex, though the May contract decreased 1.6% Friday. Silver retreated 2.4% in February after adding 10% in January and dropping 6% in December. It gained 21% in 2024. The May contract is currently down $0.129 (-0.39%) an ounce to $32.680 and the DG spot price is $32.28.
Spot palladium rose 3.1% last week to $957.50 an ounce after rallying 0.2% Friday. Palladium retreated 10% in February after advancing 11% in January and falling 6.7% in December. Palladium dropped 17% last year. Currently, the DG spot price is up $4.50 an ounce to $963.00.
Spot platinum gained 2.6% last week to $967.90 an ounce and declined 1% Friday. Platinum slid 4.7% last month after gaining 8.4% in January and losing 4.6% in December. Platinum slid 8.4% in 2024. The DG spot price is currently up $6.60 an ounce to $973.10.
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