Gold edging up near record high in Monday morning trading supported by a weaker dollar and haven demand triggered by weak economic data and inflation.
Holdings for gold-backed exchange-traded funds jumped the most since 2022, Bloomberg reported. Traders also took profits as the yellow metal continued to test levels near the $3,000-an-ounce psychological threshold. Geopolitical and economic uncertainty includes the economic outlook, inflation, the conflicts between Russia and Ukraine and Israel and Hamas, as well as tariffs and immigration policy.
April gold futures increased 1.8% last week to settle at $2,953.20 an ounce on Comex, though the most-active contract slipped 0.1% Friday. Bullion increased 7.3% last month after dropping 1.5% in December and losing 2.5% in November. The metal rose 27% in 2024, its biggest annual gain since 2010. The April contract is currently up $5.30 (+0.18%) an ounce to $2958.50 and the DG spot price is $2942.80.
Goldman Sachs last week raised its year-end target for gold to $3,100 an ounce, partly on central bank buying.
Investors will be closely watching economic news for signals on Federal Reserve policymakers’ next moves on monetary policy. The Fed cut rates three times in 2024, but most investors aren’t pricing in a Fed rate reduction until June or July, according to investors tracked by the CME FedWatch Tool. About 97.5% expect rates to remain unchanged in March, compared with 2.5% anticipating a 25 basis point cut.
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.
U.S. consumer confidence data are due out Tuesday, with new home sales data on Wednesday. U.S. durable goods, GDP and initial jobless claims data come out Thursday. And the Fed’s most closely watched inflation measure, the personal consumption expenditures price index, comes out Friday. In between, a number of Fed officials are scheduled to speak, and G20 finance ministers and central bank governors are due to meet in Cape Town, South Africa.
Front-month silver futures, which rolled to May from March last week, gained 1.5% last week to settle at $33.34 an ounce on Comex. But the May contract slid 1.4% Friday. Silver added 10% last month after dropping 6% in December and falling 5.1% in November. It gained 21% in 2024. The May contract is currently down $0.133 (-0.40%) an ounce to $33.205 and the DG spot price is $32.42.
Spot palladium lost 1% last week to $983.50 an ounce and after falling 1.1% Friday. Palladium advanced 11% last month after falling 6.7% in December and sliding 12% in November. Palladium dropped 17% last year. Currently, the DG spot price is down $37.40 an ounce to $958.50.
Spot platinum decreased 1.5% last week to $975.60 an ounce after falling 1.3% Friday. 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 DG spot price is currently down $15.40 an ounce to $969.50.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.
