Gold soared early Wednesday, breaching the $5300 an ounce mark, as the dollar tumbled ahead of this afternoon’s Fed decision. The currency’s drop occurred after President Donald Trump said that he isn’t concerned about the value of the currency, which is trading at its lowest level in four years.
A weaker dollar makes gold a more attractive asset to holders of other currencies, but haven investors have also increasingly been turning to the yellow metal amid both economic and geopolitical uncertainty.
Investors are awaiting the Federal Reserve’s monetary policy statement on Wednesday afternoon for further direction. The central bank is overwhelmingly expected to keep interest rates unchanged after cutting rates at its past three policy meetings. Trump has long called for lower interest rates, which has put him at cross purposes with Fed Chairman Jerome Powell, who is now the subject of a Justice Department investigation. That has called the Fed’s future independence into question.
April gold futures slipped $1.70 Tuesday to settle at $5,120.60 an ounce on Comex, though the front-month contract rallied 2.1% in the first two days of the week. Bullion is up 18% this month after rising 2% in December and gaining 6.5% in November. It rallied 64% last year. The April contract is currently up $187.50 (+3.66%) an ounce to $5308.10 and the DG spot price is $5276.30.
March silver futures tumbled 8.3% Tuesday to settle at $105.96 an ounce on Comex, though the front-month contract is still up 4.6% this week after rallying to a new record above $115 on Monday. The white metal has hit a series of record highs in recent weeks amid surging industrial demand. Silver is up 50% this month after soaring 24% in December and increasing 19% in November. It climbed 141% last year. The March contract is currently up $9.028 (+8.52%) an ounce to $114.985 and the DG spot price is $114.68.
Trump said Tuesday that he thinks “the dollar’s doing great” and cited “the business we’re doing.” In other economic news, U.S. consumer confidence fell to the lowest level since 2014 in January data which came out Tuesday. The Conference Board’s index tumbled 9.7 points to 84.5 in January, even worse than readings during the COVID-19 pandemic.
Investors are closely watching economic trends and the Fed ahead of the central bank’s monetary policy decision.
More than 97% of investors are betting that the Fed will keep interest rates unchanged Wednesday, according to figures tracked by the CME FedWatch Tool. About 3% expect another 25 basis point cut. The Fed reduced interest rates for a third consecutive time last month to 3.50% to 3.75%. 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.
The end of the week—after the Fed decision—will bring economic reports on weekly initial jobless claims, U.S. productivity and a series of delayed economic reports. The December and annual producer price index comes out Friday.
Risk-off investors are also turning to precious metals amid worsening tensions between the U.S. and NATO allies over President Donald Trump’s attempts to claim Greenland as well as geopolitical uncertainty over places like Venezuela, Ukraine and Gaza.
Spot palladium lost 12% Tuesday to $1,891.00 an ounce and is down 6.9% so far this week. Palladium is up 17% this month after increasing 11% in December and adding 0.5% in November. Palladium gained 74% last year. Currently, the DG spot price is up $154.90 an ounce to $2025.50.
Spot platinum fell 9.2% Tuesday to $2,562.00 an ounce and is down 7.7% this week. It’s up 26% so far this month after surging 22% in December and climbing 4.7% in November. Platinum increased 122% in 2025. The DG spot price is currently up $119.60 an ounce to $2673.30.
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