Gold
Gold is trading near $3,776.29 per ounce this morning, up about 0.3% after earlier dipping to $3,750.49. The metal earlier hit a record of $3,790.82. Traders say the rally is fueled by strong expectations of U.S. interest rate cuts, as well as rising geopolitical tensions. The weaker U.S. dollar also boosts gold’s appeal to overseas buyers. Meanwhile, comments by Fed Chair Jerome Powell, seen as cautious about further cuts, pressured some traders. Goldman Sachs forecasts two 25-basis-point cuts later in 2025 if labor market conditions deteriorate.
Silver
Silver is also seeing strength, up this morning to near $44.16 per ounce, gaining roughly 0.3%. Its performance echoes gold’s momentum, but silver also benefits more from expectations of industrial demand. Many investors view silver as undervalued relative to gold, intensifying its upward pressure. The gold-to-silver ratio remains elevated, leading some to argue silver still has room to catch up.
Other news that is affecting these spots
Stock markets are pulling back slightly today after recent highs. Some profit-taking in risk assets is visible. Fed policy remains a dominant factor: rate cuts are widely expected, although Powell’s cautious tone suggests the Fed may proceed cautiously. Inflation data remain mixed: core inflation remains sticky even as some input costs ease. That complicates the path for monetary easing. Geopolitical risks are elevated, particularly around NATO and Russia, which supports demand for safe-haven assets like gold and silver. Also, stronger central bank purchases and increased investment demand for bullion further underpin prices.
Platinum
Platinum is also gaining, trading around $1,482.78 per ounce, up roughly 0.3% as part of the metals rally. Its price is more linked to industrial and automotive demand than to monetary policy. Tight supply conditions and strong demand in sectors like clean energy help support platinum.
Palladium
Palladium is rising more strongly today, up about 1.3% to $1,235.34 per ounce. Its demand centers heavily on automotive catalytic converters and industrial uses. Although not a traditional safe haven, when the broader metals market strengthens, palladium tends to benefit from positive sentiment.
Final Word
Gold and silver continue to draw support from rate-cut expectations, geopolitical uncertainty, and demand for safe havens. Silver may outperform slightly due to its higher beta and industrial exposure. Platinum and palladium lag somewhat in sensitivity to central bank moves but gain when the metals sector is generally robust. Upcoming U.S. inflation data and Powell’s remarks will probably be critical.
