AGE Daily Gold Update

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

2/21/2025: Gold rallies for 8th straight week

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold was nearly flat, dipping less than 0.1% to hold just under $2,938, as traders shaved a little profit from yesterday's all-time high of $2,940 despite weak US data and plunging Treasury yields. For the week, bullion rallied 1.9% for its eight consecutive weekly increase. Silver also dipped less than 0.1%, finishing at $32.97 and posting a weekly rise of 0.5%.

US consumer sentiment plunged by 10% in February to the lowest level since November 2023 as Americans grow increasingly worried about Trump administration trade and cost-cutting policies and their consequences for inflation and the economy.

Separately, US business activity nearly came to a halt in February amid uncertainty over aggressive tariff policies and deep cuts in federal spending. The S&P Global PMI index showed manufacturing and services fell to a 17-month low of 50.4, where anything under 50 indicates contraction.

All three major US equity indexes tumbled on the data. The Dow and S&P 500 lost 1.7% while the tech-heavy Nasdaq dropped 2.1%.

Benchmark 10-year Treasury yields pulled back to just over 4.4% as investors shifted away from risk into the perceived safety of US government debt. Falling yields are bullish for gold because they decrease the opportunity cost for holding it instead of bonds.

Pressuring gold, the dollar added 0.2% against major rivals after the euro receded on a surprising contraction in business activity in France, the eurozone's second-largest economy.

Demand for physical gold in the US has skyrocketed since inauguration day, fueled by uncertainty generated by aggressive Trump tariffs, huge cuts in the Federal workforce, and a significant reordering of US foreign policy. Global central banks are also adding strongly to holdings of gold reserves, further lifting prices.

Platinum lost 0.9% for the day and 1.2% for the week. Palladium slipped 0.3% for a weekly decline of 0.8%.

At the New York spot close: gold dipped $2.40 to $2,937.60; silver slipped 2 cents to $32.97; platinum fell $8.70 to $971.30; and palladium shed $3.10 to $981.40 an ounce.