AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

1/16/2025: Gold surges 1.2% to month high

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold rose for a third session, surging another 1.2% to close at a one-month high above $2,746 after mixed US data and dovish comments from a Fed official pressured Treasury yields and the dollar, boosting alternative assets. Silver rose 0.6% to finish at $31.52 an ounce.

Retail sales rose 0.4% in December and November totals were revised higher. suggesting the economy entered 2025 with some momentum. December print fell slightly short of forecasts.

Separately, first-time jobless claims jumped to 217,000 last week, in part because of California wildfires.

The prices of imported goods rose by just 0.1% in December for the third straight month, putting the 12-month increase at 2.2%. Combined with this week’s soft readings on wholesale and core consumer prices, the inflation outlook has become increasingly benign following the uptick during spring and summer.

Fed Governor Christopher Waller told CNBC today that it’s reasonable to expect three or four quarter-point rate cuts this year, given weakening inflation, with most coming in the first half of the year.

Benchmark 10-year Treasury yields pulled back to a one-month low near 4.6% as traders speculated that the Fed will be more proactive with its rate-cut cycle. Fed fund futures traders are now pricing in 50 basis points of cuts in 2025, down from 30 just a week ago. Lower yields help gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Tracking lower with yields, the dollar slipped 0.1% against major rivals, supporting gold and other commodities by making them cheaper to foreign buyers.

Platinum and palladium picked up 0.6% and 0.7%, respectively.

At the New York spot close: gold gained $33.90 to $2,746.49; silver rose 20 cents to $31.52; platinum added %.60, to $939.90; and palladium advanced $6.85 to $947.55 an ounce.