AGE Daily Gold Update

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

2/5/2025: Gold extends record rally

Source: Bill Musgrave, American Gold Exchange

Austin — Extending its record rally, New York spot gold gained another 0.6% to close at a new all-time high above $2,861 as investors sought refuge from tariff uncertainty and the possibility of escalating turmoil in the Middle East. Silver dipped 0.1% to finish at $32.86 an ounce.

The whiplash effect of Trump administration tariff policy continues to drive investors toward safe haven assets. After announcing 25% tariffs on Canada and Mexico, Trump postponed them just days later, suggesting some goals had been met in negotiations.

The White House also levied 10% tariffs on China while banning the US Postal Service from delivery of packages from China and Hong Kong. The USPS ban was quickly reversed, adding more confusion over policy.

Several Fed officials voiced concern today over the inflationary effect of large tariffs and the Fed’s ability to continue reducing interest rates.

Adding to general market uncertainty, President Trump suggested today that Palestinians should leave Gaza, and the US should occupy it. While the seriousness of this idea is questionable, it nonetheless sparked anxiety over the possibility of escalating the conflict in the region.

Against this background, ADP reported a respectable 183,000 jobs were added by the private sector in January, beating forecasts, and totals for December were revised up to 176,000 from the initially reported 122,000. Investors await the government’s nonfarm payrolls report on Friday for a more authoritative measure of the labor market.

Benchmark 10-year Treasury yields fell sharply to a six-week low on flights to safety, boosting gold by decreasing the opportunity cost for holding it instead of bonds.

Also lifting bullion, the dollar fell 0.3% against major rivals on easing concerns about trade wars.

At the New York spot close: gold gained $18.30 to $2,871.60; silver inched down 3 cents to $32.86; platinum added %14.55 to $896.25; and palladium slid $9.50 to $1,000.20 an ounce.