Gold traded near the highest level in seven weeks and silver was just below a record high Friday as investors weighed the impact of this week’s Federal Reserve monetary policy decision and statement.
The Fed cut interest rates for a third consecutive time Wednesday, though three voting members dissented, one pushing for a larger reduction in rates and two for no cut at all. It’s unusual for the Fed’s policymaking body to show that much public dissent. Chairman Jerome Powell said in a news conference following the vote that the U.S. may be hugely overstating the condition of the labor market and that that was part of the decision to cut rates this week. Lower interest rates are typically considered bullish for metals, making them a more attractive alternate investment.
The Fed closely watches both inflation and labor markets when setting monetary policy.
February gold futures rose 2.1% Thursday to settle at $4,313.00 an ounce on Comex, and the most-active contract rallied 1.7% in the first four days of the week. Bullion gained 6.5% last month after increasing 3.2% in October and surging 10% in September, the most in six months. It’s up 63% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The February contract is currently up $56.80 (+1.32%) an ounce to $4369.80 and the DG spot price is $4338.00.
March silver futures surged 5.8% Thursday to settle at $64.59 an ounce on Comex, and the most-active contract climbed 9.4% so far this week. The white metal hit a series of record highs in recent days on a historic squeeze in the London market. Silver increased 19% in November after rising 3.3% in October and adding 15% in September. It’s up 121% this year after rising 21% in 2024. The March contract is currently up $0.228 (+0.35%) an ounce to $64.820 and the DG spot price is $64.02
Powell said that federal data could be overestimating job creation by 60,000 jobs a month. The September U.S. jobs report was delayed by the U.S. government shutdown this fall, and no figures have been released for October. The November report has been delayed until Tuesday and will include data from the October survey, the Labor Department has stated.
Fed officials on Wednesday cut benchmark rates to 3.50% to 3.75% and maintained their outlook for just one interest rate cut in 2026. But it’s unclear whether that forecast will stick. Powell’s term as Fed chairman is up in February, and U.S. President Donald Trump is widely expected to appoint a successor who shares his desire for lower interest rates.
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 last year.
Powell on Wednesday signaled optimism that the U.S. economy will strengthen as the threat of inflation from tariffs fades.
About 76% of investors are betting that the Fed will keep interest rates unchanged at the next policy meeting at the end of January, according to figures tracked by the CME FedWatch Tool. About 24% expect another 25 basis point cut.
Spot palladium gained 3.3% Thursday to $1,508.00 an ounce after advancing 2.9% in the first four days of the week. Palladium added 0.5% in November after rising 14% in October and gaining 14% in September. Palladium is up 62% this year after dropping 17% in 2024. Currently, the DG spot price is up $38.60 an ounce to $1537.50.
Spot platinum increased 3.8% Thursday to $1,705.10 an ounce and is up 3.1% so far this week. It climbed 4.7% in November after rising 1% in October and gaining 15% in September. Platinum is up 87% in 2025 after losing 8.4% in 2024. The DG spot price is currently up $72.50 an ounce to $1768.70.
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