Gold jumps in early morning trading, extends rally above $5,100 an ounce, on haven demand and a weaker dollar which also took silver higher into triple-digit territory and platinum to a new record.
Precious metals are attracting risk-off demand on worsening tensions between the U.S. and NATO allies over President Donald Trump’s attempts to claim Greenland as well as geopolitical uncertainty over places like Venezuela, Ukraine and Gaza.
A weakening dollar and a flight from sovereign bonds is also driving investors into precious metals as an alternate asset. The dollar came under pressure amid speculation that the U.S. may assist Japan in efforts to weaken the U.S. currency versus the yen.
Front-month gold futures rose 9.2% last week to settle at $5,017.00 an ounce on Comex after the April contract rallied 1.4% Friday. Bullion is up 16% this month after rising 2% in December and gaining 6.5% in November. It rallied 64% last year. The February contract is currently up $107.20 (+2.15%) an ounce to $5086.90 and the DG spot price is $5088.40.
March silver futures climbed 15% last week to settle at $101.33 an ounce on Comex after the front-month contract gained 5.2% Friday. The white metal has hit a series of record highs in recent weeks amid surging industrial demand. Silver is up 44% this month after soaring 24% in December and increasing 19% in November. It climbed 141% last year. The March contract is currently up $8.657 (+8.54%) an ounce to $109.99 and the DG spot price is $110.41.
Investors are also closely watching economic trends and the Federal Reserve ahead of the central bank’s monetary policy decision this week. The Fed’s independence has been called into question amid a Justice Department investigation into Chairman Jerome Powell. Powell and Trump have long been at odds over interest rates, with the president demanding that the Fed lower them. Trump is also poised to pick Powell’s successor as the chairman’s term winds to an end.
More than 97% of investors are betting that the Fed will keep interest rates unchanged Wednesday, according to figures tracked by the CME FedWatch Tool. About 3% expect another 25 basis point cut. The Fed reduced interest rates for a third consecutive time last month to 3.50% to 3.75%. 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.
In economic news, U.S. consumer confidence data for January are due out Tuesday. The end of the week—after the Fed decision Wednesday—will bring weekly initial jobless claims data, U.S. productivity and a series of delayed economic reports. The December and annual producer price index comes out Friday.
Spot palladium rallied 12% last week to $2,030.00 an ounce after surging 6.6% Friday. Palladium is up 26% this month after increasing 11% in December and adding 0.5% in November. Palladium gained 74% last year. The DG spot price is currently up $100.40 an ounce to $2116.00.
Spot platinum soared 19% last week to $2,774.20 an ounce after climbing 7.1% Friday. It’s up 37% so far this month after surging 22% in December and climbing 4.7% in November. Platinum increased 122% in 2025. The spot bullion hit $2931.20 earlier in the trading day. Currently, the DG spot price is up $65.70 an ounce to $2815.00.
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