Gold slipped early Monday on profit-taking after an inflation report released last week took gold above the $5,000-an-ounce threshold again.
The key consumer price index came in below analysts’ estimates for January, reducing investors’ fears of a bigger jump in the prices of goods and services. The report was seen as making it more likely that the Federal Reserve will reduce interest rates, which is typically bullish for precious metals, making them a more attractive alternate investment.
April gold futures rose 1.3% last week to settle at $5,046.30 an ounce on Comex after the front-month contract gained 2% Friday. Bullion surged 9.3% in January after rising 2% in December and gaining 6.5% in November. It rallied 64% last year. The April contract is currently down $37.50 (-0.74%) an ounce to $5008.80 and the DG spot price is $4988.30.
Markets in China, the world’s biggest gold-consuming country, are closed this week for the Lunar New Year holiday. Demand has soared in the weeks leading up to the holiday, adding to gold’s recent rally to record highs. The holiday this week is likely to limit liquidity, particularly during Asian trading.
The U.S. government and financial markets are also closed Monday for the Presidents Day holiday. Metals trades Monday on Comex will post on Tuesday.
The CPI report out Friday showed that inflation eased at the beginning of the year. Year-on-year, it increased 2.4% last month, compared with 2.7% the previous month. Core inflation, which excludes volatile food and energy prices, eased to 2.5% last month from 2.6%.
The Fed closely watches both inflation and the labor market when setting interest rates. The delayed U.S. jobs report for January also came out last week and showed stronger-than expected job growth.
The Fed last month kept benchmark interest rates unchanged at 3.50% to 3.75% after reducing rates at the previous three policy meetings. 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. Minutes of the January Fed policy meeting are due out Wednesday.
More than 90% of investors are betting that the Fed will keep interest rates unchanged again in March, according to figures tracked by the CME FedWatch Tool. About 10% expect another 25 basis point cut. The Fed reduced interest rates for a third consecutive time in December to 3.50% to 3.75%.
Economic data scheduled for release Wednesday include industrial production and housing starts. GDP and the Fed’s favorite inflation measure, the personal consumption expenditures price index, are due out Friday
March silver futures rallied 1.4% last week to settle at $77.96 an ounce on Comex after the front-month contract increased 3% Friday. It touched a record above $115 in January. Silver gained 11% last month after climbing 24% in December and increasing 19% in November. It rose 141% last year. The March contract is currently down $1.309 (-1.68%) an ounce to $76.655 and the DG spot price is $76.73.
Spot palladium decreased 1.3% last week to $1,719.50 an ounce but gained 3.4% Friday. Palladium rose 2.4% in January after increasing 11% in December and adding 0.5% in November. Palladium gained 74% last year. Currently, the DG spot price is up $16.10 an ounce to $1704.50.
Spot platinum declined 1.4% last week to $2,090.20 an ounce but increased 2.9% Friday. It gained 1.4% in January after surging 22% in December and climbing 4.7% in November. Platinum increased 122% in 2025. The DG spot price is currently down $56.60 an ounce to $2024.50.
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