Gold and silver ease early Friday on weaker haven demand from geopolitical tensions. Silver fell from a record high after the U.S. refrained from imposing import tariffs on critical minerals.
Investors took profits in gold as the odds of a U.S. military intervention in Iran appeared to diminish, while silver investors came off a record high reached Wednesday after the U.S. backed away from tariffs on critical minerals.
February gold futures slipped 0.3% Thursday to settle at $4,623.70 an ounce on Comex, though the most-active contract increased 2.7% so far this week. Bullion rose 2% in December after gaining 6.5% in November and increasing 3.2% in October. It rallied 64% last year. The metal rose 27% in 2024. The February contract is currently down $12.70 (-0.27%) an ounce to $4611.00 and the DG spot price is $4606.60.
March silver futures climbed 1.1% Thursday to settle at $92.35 an ounce on Comex, and the most-active contract surged 16% in the first four days of the week. The white metal has hit a series of record highs in recent weeks amid surging industrial demand. Silver soared 24% in December after increasing 19% in November and rising 3.3% in October. It climbed 141% last year after rising 21% in 2024. The March contract is currently down $3.602 (-3.90%) an ounce to $88.745 and the DG spot price is $89.03.
Most U.S. financial markets are closed Monday for the Martin Luther King Jr. holiday, so Monday Comex trading will settle on Tuesday.
Gold remained elevated on this week’s criminal probe against Fed Chair Jerome Powell, which has reigniting concerns about the central bank’s independence, as well as the ongoing situation in Venezuela and threats by U.S. President Donald Trump to take Greenland from Denmark.
Two key inflation reports this week, the consumer price index and producer price index, dampened expectations that the Fed will cut interest rates with any urgency in the near future. Trump has been pushing for lower rates.
The Fed closely watches both the labor market and inflation when setting monetary policy. The monthly U.S. jobs report for December came in below expectations a week ago, capping one of the weakest years in job gains in decades. Lower rates are typically bullish for precious metals, making them a more attractive alternate investment.
The Fed reduced interest rates for a third consecutive time last month to 3.50% to 3.75%.
About 95% 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 5% expect another 25 basis point cut. 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.
Spot palladium slipped 1.5% Thursday to $1,846.00 an ounce, though it’s up 1.2% this week. Palladium increased 11% last month after adding 0.5% in November and rising 14% in October. Palladium gained 74% last year after dropping 17% in 2024.
Spot platinum increased 1.1% Thursday to $2,426.50 an ounce and rallied 6.2% in the first four days of the week. It surged 22% in December after climbing 4.7% in November and rising 1% in October. Platinum increased 122% in 2025 after losing 8.4% in 2024.
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