Gold edges back up above the $2900 an ounce mark early Wednesday after hitting a one-week low in the previous session amid ongoing haven demand and uncertainty because of U.S. President Donald Trump’s policies.
U.S. consumer confidence data for February showed the biggest monthly decline since August 2021 amid concerns about tariffs and trade policy. Investors are awaiting the Federal Reserve’s favorite inflation measure, the personal consumption expenditures price index, on Friday for further direction.
G20 finance ministers and central bank governors are also meeting Wednesday and Thursday in Cape Town, South Africa, and may make remarks that move markets.
April gold futures fell 1.5% Tuesday to settle at $2,918.80 an ounce on Comex, and the most-active contract lost 1.2% in the first two days of the week. Bullion is up 3% this 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 $7.10 (-0.24%) an ounce to $2911.70 and the DG spot price is $2904.70.
The Conference Board’s Consumer Confidence Index for February, which came out Tuesday, fell for a third straight month amid expectations for higher inflation. The PCE index due out Friday will give investors the latest read on actual inflation and the possibilities for central bank monetary policy.
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 97.5% 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.
Separately, new home sales data are due Wednesday. U.S. durable goods, GDP and initial jobless claims data come out Thursday.
Adding to geopolitical and economic uncertainty are the economic outlook, inflation, the conflicts between Russia and Ukraine and Israel and Hamas, as well as tariffs and immigration policy.
Front-month silver futures fell 2.4% Tuesday to settle at $32.13 an ounce on Comex, and the May contract is down 3.6% so far this week. Silver is down 0.4% this month after adding 10% in January and dropping 6% in December. It gained 21% in 2024. The May contract is currently up $0.130 (+0.40%) an ounce to $32.255 and the DG spot price is $31.77.
Spot palladium lost 0.9% Tuesday to $937.50 an ounce and is down 4.7% in the first two days of the week. Palladium retreated 9.3% so far this month 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 $939.50.
Spot platinum edged up 80 cents Tuesday to $969.80 an ounce but is down 0.6% so far this week. Platinum is down 2% this 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 $6.50 an ounce to $972.20.
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