Gold and silver rebound from a one-week low early Wednesday, ahead of this afternoon’s Fed minutes, as investors snapped up lower prices after the metal tumbled Tuesday on a stronger dollar, bringing the yellow metal back to the $5000 an ounce mark.
Liquidity was thin, making price moves more volatile, as markets in China, the world’s biggest gold-consuming country, are closed this week for the Lunar New Year holiday. Demand had soared in the weeks leading up to the holiday, adding to gold’s recent rally to record highs.
Investors were awaiting the release of minutes of the January Federal Reserve policy meeting Wednesday for further direction on where the central bank may take monetary policy. Lower interest rates are typically bullish for gold, making it a more attractive investment. The Fed’s favorite favorite inflation measure, the personal consumption expenditures price index, is also due out Friday.
April gold futures fell 2.8% Tuesday to settle at $4,905.90 an ounce on Comex after rising 1.3% last week. U.S. financial markets were closed Monday for the Presidents Day holiday, so metals trades Monday posted Tuesday on Comex. Bullion surged 9.3% in January after rising 2% in December and gaining 6.5% in November. It rallied 64% last year. The April contract is currently up $108.30 (+2.21%) an ounce to $5014.20 and the DG spot price is $5002.00.
The Fed last month kept benchmark interest rates unchanged at 3.50% to 3.75% after reducing rates at the previous three policy meetings. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
Over 94% of investors are betting that the Fed will keep interest rates unchanged again in March, according to figures tracked by the CME FedWatch Tool. About 6% expect another 25 basis point cut. The Fed reduced interest rates for a third consecutive time in December to 3.50% to 3.75%.
Other economic indicators scheduled for release Wednesday include industrial production and housing starts. GDP figures come out Friday.
Last week, the key consumer price index came in below analysts’ estimates for January, reducing investors’ fears of a bigger jump in the prices of goods and services. The report was seen as making it more likely that the Fed will reduce rates. The delayed U.S. jobs report for January also came out last week and showed stronger-than expected job growth.
March silver futures slid 5.7% Tuesday to settle at $73.54 an ounce on Comex. The contract rallied 1.4% last week. It touched a record above $115 in January. Silver gained 11% last month after climbing 24% in December and increasing 19% in November. It rose 141% last year. The March contract is currently up $3.955 (+5.38%) an ounce to $77.495 and the DG spot price is $77.90.
Spot palladium decreased 1.6% Tuesday to $1,692.50 an ounce. It slid 1.3% last week. Palladium rose 2.4% in January after increasing 11% in December and adding 0.5% in November. Palladium gained 74% last year. Currently, the DG spot price is up $89.40 an ounce to $1760.50.
Spot platinum declined 3% Tuesday to $2,027.90 an ounce after falling 1.4% last week. It gained 1.4% in January after surging 22% in December and climbing 4.7% in November. Platinum increased 122% in 2025. The DG spot price is currently up $99.40 an ounce to $2114.70.
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