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Gold Price News: Gold Holds Above $2,700 Mark
Gold prices were marginally lower on Friday, but managed to hold onto most of Thursday’s gains, leaving prices just shy of a 10-week-high.
Prices moved in a relatively narrow band of $2,703 to $2,721 an ounce on Friday, compared with around $2,715 an ounce in late trades on Thursday. The gains seen earlier in the week took gold prices to their highest since early November.
The US dollar weakened against other major currencies at the start of the week, supporting dollar-denominated gold prices, as it makes the precious metal cheaper for buyers in other currencies.
However, this was balanced against signs that a tentative ceasefire agreement between Israel and Hamas in Gaza could soon be formally approved. This was approved over the weekend and took effect on Sunday, bringing an end to 15 months of hostilities. The conflict has been one of two major flashpoints that heightened the geopolitical risk environment, driving increased interest in safe-haven assets like precious metals.
Meanwhile, gold-backed ETFs saw net inflows of 6 tonnes in the week to January 10th, compared with net outflows of 3.2 tonnes the previous week, according to World Gold Council data: Gold ETF: Stock, Holdings and Flows. Meanwhile, net long positions on the Comex increased to 865.5 tonnes in the week to January 14th, compared with 791.06 tonnes the previous week, the figures showed. This was still some way off their 2024 peak of 976 tonnes in the week to September 24th, 2024. Read More
Silver Price News: Silver Edges Lower In Line with Gold
Silver prices fell on Friday, unwinding some of the previous two days of gains, with prices moving in line with a modest pull-back for gold.
Silver prices eased to a low of $30.19 an ounce on Friday, compared with around $30.82 an ounce in late trades on Thursday.
Movements in the currency markets had some influence over precious metals last week, with weakness in the US dollar seen earlier in the week providing a boost for gold and silver prices on Wednesday and Thursday. Despite Friday’s dip, silver prices managed to hold up above the psychological $30.00 an ounce level.
Uncertainties cloud industrial demand outlook:
Demand for silver from the industrial sector has been a supportive element for silver prices in 2024. However, uncertainties have emerged over Chinese demand for silver in photovoltaics after an oversupply problem prompted the government to try to regulate supply, raising questions over the sustainability of demand for silver in solar panel production in Asia’s giant economy. Read More
Silver may outperform gold in 2025 as markets embark on a rollercoaster ride - CRU’s Kirilenko
Gold is expected to have another solid year of gains, but investors should brace for some volatility and temper their upside expectations, according to one market analyst.
In a comment to Kitco News, Kirill Kirilenko, Senior Analyst at CRU, said he expects gold prices to average around $2,580 per ounce this year as markets react to President-elect Donald Trump’s proposed economic policies on global trade and taxes.
In his 2025 precious metals outlook, Kirilenko highlighted that gold’s risks are primarily centered on inflation, the USD, economic slowdowns, and geopolitics.
Although Kirilenko remains bullish on gold, he said he doesn’t foresee gold reaching $3,000 per ounce this year, as uncertainty surrounding Trump’s policies will eventually subside.
“With a clearer political direction and reduced market volatility, investor demand for safe-haven assets like gold may diminish somewhat,” he said. Read More
Gold prices see some profit taking but hold the line above $2,700 as housing starts rises 15.8% in December
Gold is facing some selling pressure but remains above $2,700 an ounce, even as the U.S. housing market shows signs of stabilizing with improved housing construction activity in December.
Housing starts jumped nearly 15% last month to a seasonally adjusted annual rate of 1.499 million units, up from November’s reading of 1.294 million units, the Commerce Department announced on Friday. The data significantly exceeded expectations, as economists had forecast a slight increase to 1.33 million units.
Despite the monthly increase, the report noted that housing activity is still down 4.4% compared to December 2023.
Better-than-expected construction data is adding pressure to gold, which is already experiencing some profit-taking after prices hit a two-month high on Thursday. Spot gold last traded at $2,705.90 an ounce, down 0.32% on the day.
Technical analysts will monitor whether the $2,700 level holds as support. This level has acted as solid resistance, with prices consolidating in a narrow range over the past three months.
While construction activity improved last month, economists are keen to see whether this momentum will persist, as permits for new construction declined slightly, in line with expectations. Read More
Indian gold market weakened in December, but ETF interest, stable prices will be supportive through wedding season – WGC’s Chacko
Even as imports, jewelry, and ETF demand declined in December, gold was still the best-performing major asset in India last year, and stable prices should boost jewelry demand during the current wedding season, according to Kavita Chacko, Research Head for India at the World Gold Council (WGC).
Chacko wrote in the latest WGC update that gold was the clear winner in 2024. “Despite a price moderation in November and December, gold emerged as the top-performing asset class in India, posting y/y gains of 21% in 2024,” she noted. “However, gold’s return in INR was lower than its 26% return in USD terms.”
Gold extended its decline in December, falling 2% after a 4% drop in November, and closing at $2,610 per ounce. But Chacko said this was largely a U.S. dollar phenomenon, and Indian gold prices were much more stable. “In the domestic market, amid price fluctuations, gold closed December 0.4% lower at INR76,328/10g,” she wrote.
“Gold has started 2025 on a strong note, rising 2.7% to US$2,679/oz as of 10 January, partly recouping the losses of the previous two months,” she said. “Global uncertainties continue to support prices. There has been a similar increase in INR terms too (to INR78,360/10g).” Read More
Gold price will hit fresh ATH of $3,175 in 2025, spot silver to trade above $38 per ounce – Metals Daily CEO Ross Norman
Gold prices will approach $3,200 this year, while silver will get close to $40 per ounce in 2025, according to Ross Norman, CEO of Metals Daily.
In his recently published 2025 precious metals price outlook, Norman demonstrated that he’s among the most bullish experts in the precious metals complex, and this despite acknowledging that market participants still don’t fully understand what drove last year’s rally.
“To know the future, you need to understand the past,” he said. “But with little or no consensus as to why gold achieved a 27% gain in 2024, it makes it especially hard to gauge whether the trend will prevail; institutional (ETF) demand is flat, investment demand is lacklustre, while reported central bank demand is below the last 2-year levels. Worst of all and most perversely, gold's inverse correlation with many traditional macro drivers are out the window.”
“Arguably, dollar strength and rising treasury yields may have only served to temper the rate of gold price increase - and hence them moving in parallel, suggesting to us that gold prices could accelerate again once the handbrake is off,” he added. “This indicates to us good underlying strength in the market.”
Norman believes much of gold’s price appreciation was likely driven by unreported central bank buying and “outlandish” Asian OTC derivatives plays. “If we are right, then we see no reason for a change in mode in 2025 and the gold rally remains intact, but perhaps a little less so,” he said. Read More
2025 red flags: Central banks, defaults, and the next financial shock – Nomi Prins
The Federal Reserve's recent pivot to cheaper money, despite lingering inflation concerns, has fueled a stock market rally disconnected from the economic realities facing consumers, according to Dr. Nomi Prins, Geo-Macro Economist, Author, and Founder of Prinsights Global.
In an interview with Kitco News, Prins, author of "Permanent Distortion: How Financial Markets Abandoned the Real Economy Forever," warned that real inflation for everyday Americans remains high, driven by persistent increases in the cost of groceries, housing, and healthcare.
"If you look beneath that month-on-month number, you are being pinched by a number of different basic items," Prins stated.
While headline inflation figures may be moderating, Prins argued that the Fed's actions are masking deeper problems in the economy. "The Fed can't print commodities, build lower-cost homes, or open oil reserves, and it can't control inflation," she said. Watch the podcast
End the Fed? Why America's backup plan may be its gold stash – Peter St Onge
President-elect Donald Trump's economic agenda, including potential tax cuts and deregulation, will likely overshadow the Federal Reserve's influence in the coming years, according to Peter St Onge, an economist at the Heritage Foundation.
In an interview with Kitco News, St Onge argued that Trump's policies aimed at boosting economic growth, such as tax cuts and deregulation, could counteract the Fed's efforts to control inflation. He suggested that these policies could lead to increased spending by families and businesses, effectively crowding out the Fed's attempts to slow down the economy.
"What he's [Powell] concerned about at this point is that Trump wants to reverse that," St Onge said. "So Trump wants to cut taxes. He wants to… give money back to people. He wants families to be spending again. He wants companies to be spending. He wants banks to be lending." Watch the podcast
Wall Street and Main Street both bullish on gold for next week as Trump 2.0, tariffs come into focus
The latest Kitco News Weekly Gold Survey showed strong bullish sentiment from industry experts and retail traders ahead of Donald Trump’s second inauguration.
“Barring any major issues with Monday’s Inauguration, I expect gold prices to remain relatively unchanged next week,” said Rich Checkan, president and COO of Asset Strategies International. “Everyone has adopted a ‘wait and see’ attitude with regard to President Trump’s policies and the effects they might have on the economy. One week is simply not enough time to see anything. We will need to wait longer to see the impact.”
“Somewhat lower, if the new POTUS will talk tariffs, which suggest higher inflation, and the Fed is seen as being serious about its inflation target,” said Bart Melek, managing director and global head of commodity strategy at TD Securities.
“I’m sticking with bullish, even if I do think a pullback is possible,” said James Stanley, senior market strategist at Forex.com. “Gold just broke out of a triangle that had been building for the past couple months. Spot is testing resistance at 2721 and that’s already given two aggressive reactions with this week being a third, but I think a pullback to a higher-low could be attractive for continuation purposes at this point.”
“The gold price rose to USD 2,725 per troy ounce yesterday, its highest level in a month,” said Carsten Fritsch, commodity analyst at Commerzbank. “At the same time, gold is on course for its third consecutive weekly rise. However, the reasons behind this have changed. Initially, it was the (geo-)political uncertainties and the resulting increased demand for gold as a safe haven that caused the price to rise. In recent days, this factor has lost traction as a six-week ceasefire has been agreed between Israel and Hamas, which is due to come into force at the weekend.” Read More
Gold could break $2,800 if Trump puts his proposals into action after inauguration
Stubborn inflation and growing economic uncertainty, as government debt continues to rise, are helping to push gold prices to critical resistance levels above $2,700 an ounce.
Not only is gold looking to end the first full trading week of 2025 at a one-month-high, but bullish momentum is picking up even as the U.S. dollar index remains elevated above 109 points. Spot gold last traded at $2,703 an ounce, up 0.51% on the week.
Although gold is seeing solid gains, some analysts note the precious metal still has work to do to break out of its two-month consolidation period. Analysts also note that gold could face challenges next week following President-elect Donald Trump’s inauguration.
Trump’s aggressive comments about using trade tariffs to support the U.S. manufacturing sector continue to bolster the U.S. dollar. However, his comments are also stoking inflation fears and concerns that economic growth could suffer due to a global trade war.
“In the short term, I see $2,725 as key resistance, and one we may struggle to break until we get a clearer picture of Trump's policies and how they may impact the dollar, yields, and the newfound belief in rate cuts,” said Ole Hansen, Head of Commodity Strategy at Saxo Bank. “I will watch news on tariffs and spending, given their importance for economic growth and the fiscal debt situation.”
Although Trump’s new administration is creating a lot of geopolitical angst as the world waits to see what policies he will push in his first few days in office, James Stanley, Senior Market Strategist at Forex.com, said there is one thing he knows Trump won’t do, which will be good for gold. Read More
Precious metals breathe a sigh of relief as Trump signals delay in tariffs ahead of inauguration
Gold and silver markets could start to breathe a little easier as U.S. markets are closed in recognition of Martin Luther King Jr. Day, and it appears that soon-to-be President Donald Trump could delay the implementation of tariffs.
Trump will be sworn in Monday as America’s 47th president and gold and silver have seen extreme volatility in anticipation that he would enact significant tariffs to support American manufacturing on day one.
However, according to the Wall Street Journal, Trump issued a presidential memo directing federal agencies to investigate trade deficits and address unfair trade and currency policies by other nations. The directive, however, stops short of imposing new tariffs on his first day in office, as many nations feared.
The fear of tariffs and a global trade war has been palpable in the precious metals market. The urgency and fear around potential tariffs were witnessed last week as gold prices pushed above $2,700 an ounce and silver prices rallied back above $30 an ounce.
Some analysts note that gold and silver prices have rallied because of a dislocation in the global supply chain as the precious metals move from London to New York. Trump’s tariff threats have created significant volatility in the Exchange Futures for Physical (EFP) markets, as bullion banks have been moving bullion to America ahead of any potential tariffs. Read More
Silver to beat gold in 2025 - Saxo Bank’s Hansen
Diversified commodity exposure should continue to perform well in 2025 as a hedge against inflation and economic uncertainty. Specifically, gold and silver are expected to outperform the sector.
Despite the bullish outlook in his 2025 forecast, Ole Hansen, Head of Commodity Strategy at Saxo Bank, recommended that investors be discerning as they build a commodity basket within their portfolios. Gold and silver remain two of his top picks after their historic runs in 2024.
Hansen said he forecasts gold prices to rise to $2,900 an ounce this year, representing a gain of 7% from current levels. However, Hansen sees even more potential in silver, projecting prices to reach $38 an ounce, a gain of nearly 30% from current levels. He added that his outlook is skewed to the upside.
Looking at gold, Hansen noted that the precious metal will remain an important safe-haven asset through 2025.
“The demand for investment metals has been fueled by an increasingly uncertain geopolitical landscape, where global tensions and economic shifts have led investors to seek safer assets, a development that shows no signs of fading anytime soon,” he said. “Additionally, concerns about mounting global debt, particularly in the United States, have prompted investors to hedge against economic instability by turning to precious metals.”
However, he added that investors will need to be patient as the Federal Reserve shortens its easing cycle. Currently, markets are pricing in only one rate cut this year, a sharp contrast to expectations from a few months ago. The U.S. central bank’s hawkish stance could support the U.S. dollar, creating some volatility in the precious metals market. Read More
Live From The Vault - Episode: 206
Experts’ Predictions for Gold & Silver in 2025. Feat Schectman, Hemke & Kientz
In this week’s Live from the Vault, Andrew Maguire teams up with industry heavyweights Andy Schectman, Craig Hemke, and Rob Kientz to dissect central bank gold accumulation and the widening gap between wholesale and retail demand.
The panel of experts unpacks strategies for preserving wealth in a changing precious metals market, shares market predictions for gold and silver amidst U.S. economic challenges, and uncovers how consumer distractions influence retail activity.
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.
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