Gold slips from near record highs this morning on likely profit taking. The yellow metal jumped over $3400 an ounce in overnight trading amid demand from investors seeking a haven against geopolitical and economic uncertainty.
Prices remain elevated following Israel’s attacks on Iran beginning last week and retaliatory strikes by Iran on Israel. Traders throughout the broader market seemed unwilling to make big bets in either direction as the conflict developed.
August gold futures rose 3.2% last week to settle at $3,452.80 an ounce on Comex after the front-month contract gained 1.5% Friday. Bullion slipped 0.1% last month after increasing 5.4% in April and gaining 11% in March. It’s up 31% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The August contract is currently down $39.60 (-1.15%) an ounce to $3413.20 and the DG spot price is $3394.60.
Iran launched fresh air strikes against Israel late Sunday and early Monday after Israel reported that it killed key Iranian figures over the weekend—including the chief of Iran’s armed forces intelligence unit. U.S. President Donald Trump reportedly dissuaded Israel from taking out Iran’s supreme leader, and Trump on Sunday called for the two sides to make a deal.
A three-day meeting of the Group of Seven nations in Canada early this week will likely take on the conflict and discuss Trump’s tariff and trade policies.
Investors will also be watching the upcoming Federal Reserve policy meeting this week for any signals on plans for interest rates for the rest of the year. The Fed’s next monetary policy announcement is due out Wednesday, but the central bank is widely expected to leave interest rates unchanged at 4.25% to 4.50%. Most investors tracked by the CME FedWatch Tool expect the Fed to begin interest rate cuts in September, not at this week’s meeting or the next one in July. Lower interest rates are typically bullish for gold, making the yellow metal a more attractive alternate investment.
The Fed held rates at policymakers’ meetings this year after reducing them 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 rallied 0.6% last week to settle at $36.36 an ounce on Comex after the July contract rose 0.2% Friday. Silver added 0.6% in May after dropping 5.2% in April and advancing 9.9% in March. It gained 21% in 2024. The July contract is currently down $0.025 (-0.07%) an ounce to $36.330 and the DG spot price is $36.31.
Spot palladium fell 2% last week to $1,041.50 an ounce after losing 2.3% Friday. Palladium advanced 2.8% last month after falling 4.9% in April and rising 7.3% in March. Palladium dropped 17% last year. The current DG spot price is up $10.20 an ounce to $1056.50.
Spot platinum rose 5.2% last week to $1,232.50 an ounce, though it fell 4% Friday. It surged 8.6% in May after retreating 3.1% in April and increasing 6.7% in March. Platinum lost 8.4% in 2024. The DG spot price is currently up $56.90 an ounce to $1280.80.
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