Gold rises early Friday as the dollar slips and investors buy the dip after the U.S. and U.K. announced Thursday that they’d reached a trade deal. The yellow metal is now poised for a weekly gain.
Investors were turning to talks this weekend between U.S. and China officials in Switzerland to sort out their trade issues. Gold remains a hedge against geopolitical and economic uncertainty, including U.S. tariffs and economic forecasts.
June gold futures fell 2.5% Thursday to settle at $3,306.00 an ounce on Comex, and the front-month is up 1.9% in the first four days of the week. Bullion increased 5.4% in April after gaining 11% in March and adding 0.5% in February. It’s up 25% so far this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The June contract is currently up $34.80 (+1.05%) an ounce to $3340.80 and the DG spot price is $3338.40.
U.S. President Donald Trump said Thursday that the U.K. had agreed to permit broader market access for American products, though the details of the agreement were left unresolved and he kept tariffs on U.K. products in place. Meanwhile, the U.S. and China were poised to take the first steps in resolving their trade war with the talks in Switzerland on Saturday, though no immediate resolution or lowering of U.S. tariffs on China is expected.
Federal Reserve Chairman Jerome Powell said Wednesday that the central bank can wait to adjust interest rates until it determines the impact of Trump’s tariff policy on inflation and the labor market. He spoke after the Fed left interest rates unchanged again at 4.25% to 4.50%.
“If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment,” he said at a news conference concluding the central bank’s two-day policy meeting Wednesday.
Most investors tracked by the CME FedWatch Tool now expect the Fed to begin interest rate cuts in July, not the next scheduled policy meeting in June. Lower interest rates are typically bullish for gold. The central bank has said it closely watches both labor market and inflation data when setting monetary policy.
U.S. weekly initial jobless claims for last week fell sharply in data released Thursday. The May consumer price index, a closely watched inflation report, is scheduled for release on Tuesday of next week.
The Fed left rates unchanged at policymakers’ meetings this year after reducing rates three times in 2024. 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. Previously, the Fed had kept rates at 5.25% to 5.50% for a year.
Front-month silver futures fell 0.5% Thursday to settle at $32.62 an ounce on Comex, and the July contract is up 1.1% so far this week. Silver dropped 5.2% last month after advancing 9.9% in March and retreating 2.4% in February. It gained 21% in 2024. The July contract is currently up $0.218 (+0.67%) an ounce to $32.835 and the DG spot price is $32.70.
Spot palladium slipped $1 Thursday to $984.00 an ounce and is up 3% so far this week. Palladium fell 4.9% last month after rising 7.3% in March and retreating 10% in February. Palladium dropped 17% last year. Currently, the DG spot price is up $4.40 an ounce to $992.00.
Spot platinum lost 0.4% Thursday to $984.90 an ounce and is up 1.6% in the first four days of the week. Platinum retreated 3.1% in April after increasing 6.7% in March and sliding 4.7% in February. Platinum lost 8.4% in 2024. The DG spot price is currently up $7.70 an ounce to $994.50.
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