AGE Daily Gold Update

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

1/17/2025: Gold scores third weekly win

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold inched down less than 0.1% to hold near a one-month high above $2,744 as an uptick in the dollar prompted traders to take profits from the metal's three-day rally. Bullion finished the week with a gain of 1.3% for its third straight weekly win. Silver slid 1.8% for the day and 0.5% for the week, finishing at $30.95 an ounce.

This week’s surprisingly soft data on wholesale, core consumer, and import prices have shifted the outlook for inflation and interest rates, breathing new life into the gold price.

Entering the week, traders anticipated just 30 basis points in rate cuts for all of 2025. This hawkish view, the result of a stronger-than-expected US economy and a few months of rising inflation, lifted yields to a 10-month peak and the dollar to its highest level in two years, pressuring gold in turn.

But the outlook has shifted because of softer inflation. Fed funds futures traders are now pricing in 50 basis points of rate cuts for this year, according to CME FedWatch. Meanwhile, Fed Governor Christopher Waller said three or four quarter-point rate cuts this year are reasonable if inflation continues to moderate.

Benchmark 10-year Treasury were little-changed today but sharply lower for the week on the changing rate outlook. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds for safety.

The dollar picked up 0.3% for the day but fell 0.6% for the week, lifting gold by making it cheaper in other currencies.

Traders are bracing for market volatility next week following the inauguration of President-elect Trump on Monday. As many as 100 executive orders are expected on his first day in office, including blockbuster policies on tariffs and immigration that could disrupt the economy.

Platinum gained 1.8% for the day but lost 3.2% for the week. Palladium rose 0.8% for a weekly gain of 0.7%.

At the New York spot close: gold dipped $2.10 to $2,744.30; silver shed 57 cents to $30.95; platinum picked up $16.80 to $951.10; and palladium added $8, to $958.30 an ounce.