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Gold Price News: Gold Hits One-Month High
Gold prices rose further on Friday to cap a bullish week for the precious metal, as the supportive effects of market uncertainty appeared to eclipse US data which cast doubt over the prospects for further interest rate cuts.
Prices approached the $2,700 an ounce mark, reaching an intraday high of $2,699 an ounce on Friday, having rebounded from an earlier drop to as low as $2,664 an ounce. That was the highest price for gold since December 12th. Friday showed the fourth straight daily rise in gold prices, bringing the metal’s weekly gains to 1.79%.
Gold (KAU) price – $/g – on the Kinesis Pro exchange
Figures show a stronger than expected US economy:
US data released on Friday painted a stronger than expected view on the US economy, strengthening the case for the US Fed to hold interest rates unchanged in the coming months – seen as a negative for gold prices, given earlier expectations of cuts.
These included the non-farm payrolls figures for December, which showed that the US economy added 256,000 jobs in December, compared with expectations of only 160,000. The US unemployment rate for December was also released on Friday, showing a drop to 4.1%, compared with expectations that the rate would be unchanged from November levels of 4.2%.
Market uncertainty maintains interest in gold:
Gold’s strength on Friday also came despite a rise in the dollar against other major currencies. Gold appears to have taken support from market uncertainty over the incoming administration in the US as the markets try to assess the likelihood and impact of trade tariffs, and this has come amid ongoing geopolitical tensions which raise the risk of wider conflicts. Read More
Silver Price News: Silver Ends with Weekly Gain of 3.4%
Silver prices climbed to their highest for one month on Friday, ending the week with week-on-week gains of 3.4%, as gold made similarly strong moves on Friday.
Prices briefly spiked to $31.40 an ounce – their highest since December 12th. However, this did not represent repeatable trade, and prices eased back to $30.45 an ounce by Friday evening.
Silver (KAU) price – $/oz – on the Kinesis Pro exchange
Economic uncertainties drive safe-haven interest:
Precious metals continue to benefit from uncertainty over the prospects of US trade tariffs and their potential impacts on global trade and financial markets.
Recently, traders have scaled back bets on further interest rate cuts by the US Federal Reserve as possible incoming trade barriers are likely to keep inflation higher for longer. While this factor is notionally bearish for precious metals prices, the uncertainties in the wider markets have maintained interest in safe havens like gold and silver.
Meanwhile, industrial production in India rose by 5.2% in November, well above market expectations of 4%, according to figures released on Friday. Meanwhile, manufacturing production in the country grew by 5.8% — the most since October 2023, in a bullish signal for industrial silver demand from one of the world’s largest consumers. Read More
Over 50% of retail traders predict gold will repeat as top metal in 2025, experts see strong potential for silver to take the crown
Metals markets lived through a tumultuous 2024, and while gold was the standout performer and silver made its long-awaited move later in the year, copper failed to break out last year and platinum group metals (PGM) investors were left out in the cold.
The Kitco News Top Metals 2025 Survey showed retail traders continue to believe in gold’s ability to outperform in an unstable world, while industry experts also see potential for silver prices to play catch-up in the second half of the year.
Kitco News gathered the votes of 208 retail investors this week for the Kitco News Top Metals 2025 Survey, and the results showed that over half of Main Street expects gold will outgain all other metals once again in 2025.
106 retail traders, fully 51%, expect the yellow metal to lead all others this year. Another 36%, or 74 Main Street investors, predicted silver would be the top gainer in 2025, while 8%, or 17 participants, expect copper to post the strongest performance. The remaining 11 retail traders, representing 5% of the total, think platinum and palladium prices will outperform other metals in 2025. Read More
Gold prices: a strong rally amid economic uncertainty and upcoming data
With two straight weeks of advances, gold has given traders and investors some optimism within a more erratic economic scene. Gold has held its footing in spite of a strong U.S. dollar and anticipations of tighter monetary policy after the Friday publication of economic statistics. But as the new week gets underway, the precious metal finds itself beginning on the back foot as traders adjust their positions and evaluate the most recent economic data that may be absolutely crucial in determining the direction of Federal Reserve monetary policy.
The Gold Recent Price Action:
Although the dollar surged noticeably after the publication of important economic data last Friday, gold's price behaviour has been remarkable in recent weeks, as the metal managed to guarantee two straight weeks of gains. The report showed more than anticipated, which caused traders to change their projections on the Fed's near future interest rate policy. Notwithstanding this, gold's resiliency is still remarkable, as it is still a safe-haven asset in unstable markets.
The trading gold chart from MT4 trading platform shows important price level for trader on the daily time frame.
But gold prices began the week on a more wary tone. Particularly because fresh important economic data will be published this week, traders are reevaluating the consequences of Friday's numbers. These studies, including U.S. Non-Farm Payroll (NFP) statistics and inflation indicators such the Producer Price Index (PPI) and Consumer Price Index (CPI), are predicted to be very important in determining the market attitude for gold in the next days. Read More
Silver prices have a path above October 2024 highs, but Trump policies and Fed outlook can still surprise the market– IG’s Rong
Silver prices were ultimately able to follow gold higher in 2024, and the gray metal has a path to further gains in 2025, but the incoming Trump administration and the Fed’s rate trajectory still have the potential to surprise, according to IG market strategist Yeap Jun Rong.
“While robust central bank demand has been a significant driver for gold, it plays a less prominent role for silver,” Rong wrote in an analysis published Sunday. “Nonetheless, silver's performance over the past year has been comparable to that of gold. Silver prices have surged by 31.2% year-on-year, closely mirroring gold's 31.7% increase.”
Rong said the combination of the Federal Reserve’s recent hawkish turn, U.S. dollar strength and rising Treasury yields drove silver prices down from October’s decade-high levels.
“However, one may argue that this retracement has not disrupted silver's broader higher-lows formation just yet,” he said. “Recent positive US economic surprises have led market participants to recalibrate their rate cut expectations to lean towards only a single cut this year, which is less dovish than the previously guided median estimate of two cuts by US policymakers. Inflation risks are coming into focus, with economic data signalling for potential reflation, further underscored by anticipation of a Trump 2.0 administration.” Read More
Gold, silver sharply down on corrective pullbacks
Gold and silver prices are sharply lower in midday U.S. trading Monday, on what are so far just routine downside corrections and profit taking from the shorter-term futures traders after recent good gains. A rally in the U.S. dollar index to a two-plus year high today and rising U.S. Treasury yields are also bearish outside-market elements to start the trading week. February gold was last down $34.00 at $2,680.90. March silver was down $1.029 at $30.295.
The U.S. data point of the week is the consumer price index for December, due out Wednesday. CPI is seen coming in at up 2.9%, year-on-year, versus up 2.7% in the November report. Excluding food and energy, the “core” CPI is seen rising 0.2% after four straight months of 0.3% increases, according to a Bloomberg survey. The core CPI is forecast to have risen 3.3%, year-on-year, unchanged from readings from the previous three months. The U.S. producer price index it out Tuesday.
Technically, February gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the December high of $2,761.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the December low of $2,596.70. First resistance is seen at $2,700.00 and then at today’s high of $2,723.80. First support is seen at today’s low of $2,679.60 and then at $2,673.70. Wyckoff's Market Rating: 6.5.
Image Source: Kitco News
March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $31.84. The next downside price objective for the bears is closing prices below solid support at the December low of $29.145. First resistance is seen at $30.75 and then at $31.00. Next support is seen at today’s low of $30.225 and then at $30.00. Wyckoff's Market Rating: 5.0. Read More
Image Source: Kitco News
Gold’s role as a dynamic hedge will drive prices above $2,850 this year - BMO Capital Markets
Gold prices have continued to consolidate within a broad range as they struggle to break resistance above $2,700 an ounce. However, one bank remains optimistic about the precious metal, identifying four key factors expected to drive prices higher this year.
Among commodities, gold is one of the few that analysts at BMO Capital Markets are bullish on for 2025. They anticipate central banks will continue to purchase gold as they diversify away from the U.S. dollar. Furthermore, the Canadian bank expects gold to remain a dynamic asset, serving as an effective hedge against inflation, geopolitical uncertainty, and equity market risks.
Next week, Donald Trump will be sworn in as the next President of the United States. The global community is already bracing for the new administration, with Trump signaling plans to implement tariffs to promote and support America-first domestic policies.
BMO analysts stated that Trump’s administration will be “inherently” inflationary.
“The incoming administration has emphasized two clear policies which will be a focus of Trump’s second term. The first is that 2025 is gearing up to be the year of heightened tariffs… Since tariffs effectively constitute a domestic tax on consumption paid by the consumer, economic consensus is that tariffs are inherently stagflationary,” the analysts noted in their report. “The second policy indication is that higher government spending is here to stay. Trump won the election on a ticket of tax cuts on corporates and individuals alike, and his election pledges are expected to add an estimated $7.75 trillion to US debt between 2026 and 2035 according to analysis done by the Committee for a Responsible Federal Budget.” Read More
Gold’s resilience defies high yields and shallower Fed rate path, silver prices at risk with potential US recession – Heraeus
Despite high bond yields and fewer Fed rate cuts on the horizon, gold prices are holding up relatively well, but silver prices face significant downside risk if a likely U.S. recession materializes in the second quarter, according to precious metals analysts at Heraeus.
In their latest precious metals update, the analysts noted that while China’s resumption of gold purchases at the end of the year got a lot of attention, Poland actually led all central banks in 2024.
“The People’s Bank of China purchased 5 tonnes of gold in November plus 9.3 tonnes in December, marking a consistent return to buying to finish 2024 after a six-month hiatus,” they wrote. “However, Poland has led central bank gold purchases in 2024, with cumulative year-to-date purchases of 89.5 tonnes compared to China’s 33.9 tonnes, as of November. The top four countries for central bank gold demand in 2024 – Poland, Turkey, India and China (in that order) – accounted for 72% of total central bank demand, which totalled 270.8 tonnes to November. Of these, Turkey and India made net purchases every month in 2024, with Poland consistently buying since April.”
“While China’s return to gold purchases is a positive indicator for continued demand into 2025, India, Turkey, and Poland appear to be more reliable drivers of demand,” they added. “These countries are likely to keep using gold as a reserves diversifier as their currencies continue to weaken against the US dollar, whereas the yuan has rallied since October."
Heraeus also pointed out that bond yields have been on the rise in the new year, but gold appears to be unfazed. Read More
A delayed reaction to jobs report and dollar rally drive gold's 1.33% decline
Gold futures tumbled $36.10 (1.33%) today as the U.S. dollar climbed to its highest level in over two years. The dollar index reached 109.939, advancing 0.19 points and touching an intraday peak of 110.249 – levels not seen since November 2022. Rising treasury yields added further pressure on gold, with the two-year note yielding 4.4% (up 1.2 basis points) and the 10-year note at 4.783% (up 1.4 basis points).
Image Source: Kitco News
The most active February gold futures contract settled at $2,681.30 as of 5:40 PM ET, after factoring today’s substantial decline of $36.10.
Market sentiment continues to adjust to Friday's robust nonfarm payrolls report, which showed 256,000 new jobs added last month – significantly exceeding Reuters' consensus estimate of 160,000. This strong employment data has dampened expectations for aggressive Federal Reserve rate cuts in 2024, with analysts now projecting only one or two 25-basis-point reductions throughout 2025.
A Saxo Bank analysis noted: "Gold is trading near USD 2,700, maintaining strong demand despite the headwinds of a robust dollar and rising yields. The latter has fueled a growing risk-off sentiment in markets amid concerns over financial stability and heightened volatility ahead of Trump's return to the White House." Read More
Real assets vs. dollar: The great reserve shift in 2025 – sovereigns are ditching fiat
This year will pave the way for a great central bank reserve shift from fiat to assets like gold and Bitcoin, according to Deven Soni, CEO of Matador Technologies.
"We're going to see more governments rebalance their holdings away from fiat assets and towards assets like Bitcoin and gold," Soni told Kitco News anchor Jeremy Szafron. "That's going create an outsized return for gold relative to fiat currencies."
Driving diversification toward Bitcoin will be countries looking to establish Bitcoin strategic reserves, including the U.S.
" We're going to see a lot of other countries stepping into a Bitcoin reserve decision. That's going to push the U.S. to follow suit. It's going to be a bit of dominoes," Soni said. "We don't necessarily know which domino will fall first. However, the vast majority will start looking at Bitcoin much more seriously. And the U. S. will be a big leader in that, especially in the early days."
Soni suggests the initial step will be for the U.S. government to hold the confiscated Bitcoin rather than sell it. The next step, committing a portion of the budget to purchasing Bitcoin, will be "a trickier one," but he expects the pressure from other countries' actions to push the U.S. in this direction. Watch the podcast
Live From The Vault - Episode: 205
R.I.P. COMEX 1974 to 2025
In this week’s Live from the Vault, Andrew Maguire dives into the forces reshaping gold and silver markets in 2025, examining how surging physical demand and Basel III regulations drive a structural shift in pricing dynamics.
Andrew unveils his bold forecast for gold and silver, then explores the growing impact of dedollarisation and central bank buying in accelerating the transition to a more transparent, physically backed market system.
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
Featured Image - Source: Unsplash
