Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 0.5% to close above $2,777 as the dollar fell further on tariff uncertainty and President Trump’s call for lower interest rates. Bullion rallied 1.2% for the week, marking its fourth consecutive weekly increase and putting it within striking distance of its all-time high of $2,790. Silver gained 1.2% today and 0.2% this week to finish at $31.02 an ounce.

Trump reportedly told Fox News today that he might not use tariffs on China, citing a “friendly” phone conversation with Chinese President Xi that might lead to a trade agreement. Other comments from the President this week indicated other tariffs might be smaller and more targeted than the aggressive, blanket levies he advocated during his campaign.

The dollar fell another 0.6% against major rivals, extending the selloff that resulted from Trump’s statement at Davos that he would “demand” lower interest rates. In addition, a softer tariff policy would further weaken the buck by being be less inflationary and less likely to trigger trade wars, both of which would hamper the Fed’s ability to lower interest rates further.

The buck lost 1.8% for the week for its worst weekly performance since November 2023. A weaker dollar supports gold and other commodities by making them less expensive in other currencies, lifting overseas demand.

Platinum rose 0.7% this week. Palladium ended the week 4% higher.

At the New York spot close: gold gained $14.20 to $2,777.30; silver surged 35 cents to $31.02; platinum picked up $13.85 to $957,60; and palladium was little changed at $997.50 an ounce.