Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold slipped 0.8% to close at $2,746 as Treasury yields and the dollar ticked higher after the Fed left interest rates unchanged and issued a slightly hawkish policy statement. Silver dipped 4 cents to $30.69 an ounce.

At its first meeting of 2025, the Federal Reserve hit pause on interest rates after three straight cuts totaling 1%. While the decision was almost universally expected, some intrigue developed over whether the central bank would placate President Trump’s demand at Davos last week that rates be lowered.

In its accompanying policy statement, the Fed took a wait-and-see posture while eliminating language citing progress toward its 2% goal. The odds of a quarter-point reduction at the March meeting dropped to 18% from 31% before the statement, according to CME FedWatch.

Benchmark 10-year Treasury yields crept slightly higher on the revised rate view, pressuring gold by increasing the opportunity cost for holding it instead of bonds for safety.

Tracking with yields, the dollar added 0.3% against major rivals. A stronger buck weighs on gold and silver by making them pricier in other currencies.

Some of the safe-haven bid also faded after the White House rescinded its memo to freeze $3 trillion in spending on government programs. The controversial order caused chaos and confusion and was blocked by a federal judge.

Platinum and palladium picked up 2% and 0.2%, respectively.

At the New York spot close: gold fell $20.80 to $2,746; silver slipped 4 cents to $30.69; platinum rose $18.40 to $965.40; and palladium added $5.65, to $966.40 an ounce.