Gold was little changed early Wednesday, continuing to trade near its record high above $3,000 an ounce on fears that the next round of U.S. tariffs with the country’s trading partners could be more impactful than previously anticipated.
Haven investors have flocked to the yellow metal, as have central banks and institutional investors trying to protect themselves against geopolitical and economic risk. U.S. consumer confidence extended a sharp 2025 slump in March data released Tuesday by the Conference Board.
June gold futures rose 0.3% Tuesday to settle at $3,054.30 an ounce on Comex, and the most-active contract rallied 1.1% in the first two days of the week. Bullion is up 7.2% in March after rising 0.5% last month and gaining 7.3% in January. The metal rose 27% in 2024, its biggest annual gain since 2010. The June contract is currently up $2.30 (+0.08%) an ounce to $3056.60 and the DG spot price is $3022.50.
Holdings in gold-backed exchange-traded funds continued to see large inflows, Bloomberg reported. Gold rose above $3,000 an ounce for the first time this month and posted its third weekly gain last week on economic and geopolitical uncertainty.
The consumer confidence index fell for a fourth straight month to its lowest reading since January 2021 and also missed analysts’ estimates. In addition to the drop in the headline number, a measure of Americans’ short-term expectations for income, business and the job market fell to the lowest reading in 12 years – well below the level that the Conference Board says can signal a potential recession.
Investors are awaiting Friday’s release of the Federal Reserve’s favorite inflation measure, the personal consumption expenditures price index, with February data for further indications on the economy and how the central bank may shape monetary policy going forward.
Additionally, durable goods orders data are due Wednesday and fourth-quarter GDP and weekly initial jobless claims come out Thursday. The Fed closely watches both inflation and labor market data when setting monetary policy.
About 87.8% of investors tracked by the CME FedWatch Tool expect rates to remain unchanged at Fed policymakers’ next meeting in May, compared with 12.2% anticipating a 25 basis point cut. The Fed 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. Previously, the Fed had kept rates at 5.25% to 5.50% for a year.
The Fed left rates unchanged at 4.25% to 4.50% last week. It reduced rates three times in 2024, but most investors aren’t pricing in another Fed rate reduction until June. Rate cuts are typically considered bullish for gold because they make the precious metal a more attractive alternate investment.
Front-month silver futures gained 2.2% Tuesday to settle at $34.19 an ounce on Comex, and the May contract increased 2.1% in the first two days of the week. Silver is up 8.6% this month after retreating 2.4% in February and adding 10% in January. It gained 21% in 2024. The May contract is currently up $0.158 (+0.46%) an ounce to $34.345 and the DG spot price is $33.72.
Spot palladium added 0.6% Tuesday to $970.00 an ounce and is up 50 cents so far this week. Palladium is up 4.4% this month after retreating 10% in February and advancing 11% in January. Palladium dropped 17% last year. Currently, the DG spot price is up $5.30 an ounce to $975.00.
Spot platinum rose 1.5% Tuesday to $986.90 an ounce and gained 0.5% in the first two days of the week. Platinum is up 4.6% in March after sliding 4.7% in February and gaining 8.4% in January. Platinum lost 8.4% in 2024. The DG spot price is currently down $2.80 an ounce to $985.70.
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