Gold tipping up early Wednesday as the dollar slipped from a one-month peak and Treasury yields slid, while spot platinum is leaping to a near ten-year high, near $1500 an ounce.
The yellow metal still appears headed for a weekly drop, with spot gold declining 0.2% so far this week and U.S. gold futures easing 0.3%. Gold is getting support on Friday from the dollar, which is down 0.4% on the day, however the dollar is headed for its second straight weekly rise.
One lingering concern which has lifted gold is the fate of U.S. Fed Chair Powell. Earlier in the week, The New York Times reported that President Trump told a small gathering of House Republicans that he was considering firing the chairman. The next day in a press conference, President Trump revealed that while he had discussed the “concept of firing” Powell, he had no imminent plans to do so.
The lessening of doubts over the independence of the Fed, and this week’s mildly positive U.S. economic data put a lid on gold’s upside. Retail sales rising more than expected in June and initial jobless claims coming in better than expected. Some of the safe haven glow seems to have transferred to silver, platinum and palldium.
August gold futures fell 0.7% Tuesday to settle at $3,336.70 an ounce on Comex, and the front-month contract slid 0.8% in the first two days of the week. Bullion slipped 0.2% in June after losing 0.1% in May and increasing 5.4% in April. It’s up 26% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The August contract is currently up $18.90 (+0.56%) an ounce to $3364.20 and the DG spot price is $3357.10.
Trump has increasingly called on the central bank to accelerate planned interest rate cuts. But most investors are still betting that the Fed will begin rate cuts at its September meeting, not the next one at the end of this month, according to the CME FedWatch Tool. The Fed kept interest rates unchanged at 4.25% to 4.50% in June, though policymakers signaled that the central bank is still factoring two interest rate cuts this year.
The Fed reduced rates three times in 2024 but has held them steady this year. 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.
On Thursday, front-month silver futures settle at $38.303 an ounce on Comex, and the most-active September contract declined 2.2% in the first two days of the week. Silver increased 9.5% in June after adding 0.6% in May and dropping 5.2% in April. It rose 21% in 2024. Currently, the September contract is up $0.472 (+1.23%) an ounce to $38.775 and the DG spot price is $38.34.
Spot palladium increased 4.11% Thursday to $1,288.50 an ounce but is up 6.3% so far this week. Palladium surged 14% last month after advancing 2.8% in May and falling 4.9% in April. Palladium dropped 17% last year. Currently, the DG spot price is up $28.40 to $1300.00.
Spot platinum rose 3.11% Thursday to $1,468.90 an ounce and is up 6.3% this week. It climbed 27% last month after gaining 8.6% in May and retreating 3.1% in April. Platinum lost 8.4% in 2024. The DG spot price is currently up $11.70 an ounce to $1469.80