Today, we will tell you about gold prices. Wall Street worries about a near-term top, but Main Street remains bullish on gold prices next week. Let’s start:
This week, the gold market was shaken by data on inflation, congressional testimony, threats to tariffs, and geopolitical developments. However, by Friday, the market had cooled, and some traders were reconsidering their bullish strategies for the near term.
Spot gold began this week at $2,863.31; however, it swiftly went to dust, gaining up to $2,880 an ounce by midnight Eastern and up to $2,905 before the North American market opened on Monday morning. As of 9:15 PM Eastern Standard Time on Monday night, spot gold had hit an all-time high of $2,940 per ounce.
Wall Street worries about a near-term top, but Main Street remains bullish on gold prices next week.k
The $2,900 mark provided strong security throughout the week, during which gold prices fluctuated upwards and downwards in response to every day’s economic news and market-moving announcements.
Tuesday morning was the first day of Federal Reserve chair Jerome Powell’s testimony before Congress. At 8:15 AM, the price of gold had dropped to $2,884 per ounce; however, Powell was seated before his Senate Banking Committee at 10 AM. It was trading at around $2,900 an ounce.
Gold traded Wednesday morning at $2,871 a pound, the lowest price since the opening of the weekly session; however, the publication of more volatile than expected CPI inflation figures around 88:30 AM brought gold right back to the low $2,890s. During Powell’s testimony to the House Financial Services Committee on Wednesday, it climbed to $2,908 for an ounce.
After a slight dip in the afternoon, gold prices began their steady – but not the fastest – increase this week, ranging from $2,895 an ounce at 2:15 PM to $2,922 after midnight. A decrease in the yellow metal accompanied Thursday’s announcement of higher-than-expected PPI inflation. However, after the North American market closed, it traded at around $2,930, and following a strong performance in both the Asian and European sessions, the price crossed just under $2,940 shortly after 5:15 AM. Eastern.
This was the highest watermark for the price of gold because its three failed attempts to breach Monday night’s high caused a dramatic slide lower that was further aggravated after disappointing retail sales reports for January. Gold spot dropped dramatically from $2,932 for an ounce around 7:15 AM Eastern Standard Time until $2,886 at 1:15 PM. It continued to trade throughout Friday within just a couple of dollars of this price.
The most recent Trading User Platform News Weekly Gold Survey found that industry experts were bullish but were more divided about the yellow metal. Retail traders have also tempered their demands for more price increases for gold.
“p,” said James Stanley, a senior market strategist at Forex.com. Bulls are still in control, and I don’t believe there’s been a breakthrough yet. We may be experiencing more of a pullback ahead of an eventual test of $3k in spot gold. However, I’m not sure it’s an option to think about shortly, and given the strength of the trend that it continues to grow forward, I’ll keep a bullish bias.”
“I am neutral on gold for the coming week,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. “Gold has enjoyed a great run in recent times and could be due for a slowdown to consolidate gains from recent months. Also, it’s a long weekend and a shorter time frame for trading.”
Pi Coin, is it possible to surpass 500 Dollars? The experts say it all depends on Binance, and here’s what you need to know
“Up,” said Adrian Day, President of Adrian Day Asset Management. Adrian Day Asset Management. “Momentum still with gold and reasons to buy remain intact.”
“Higher,” said Rich Checkan, President and CEO of Asset Strategies International. “The trend is still firm, and uncertainty is the present constant. Also, CPI and PPI suggest inflation does not plan to retire peacefully. Gold is in a good position as a hedge against uncertainty and inflation. As we near $3,000, we can witness a short-term pullback at that psychologically significant price. But not quite yet.”
“Up,” said Darin Newsom, a senior market analyst at
Barchart.com. “Why? Everything. That’s the method to define it. What else are investors who invest in the long term expected to do when markets are being purposefully (illegally?) controlled by the everyday cycle of declaring tariffs only to declaring that the next day, the tariffs will be delayed as the flames of geopolitical instability are continuing to be ignited.”
“Does the fact the market is already priced at all-time highs give me pause?” Newsom asked. “No. The only sign of uncertainty originates from the Poseidon Problem: When everyone is on the opposite part of the vessel, which is, in this instance, on the opposite side. The boat will tend to tip over.”
Carsten Fritsch, commodity analyst at Commerzbank, is adamant about gold this coming week but recommends being cautious. “It looks as though the recent record high may not be the last,” Fritsch stated. The closeness to the 3,000 mark is also a strong argument for a future price rise. But this will boost the possibility of a correction.”
Bob Haberkorn, a senior commodities broker at RJO Futures, said that despite the report on retail sales released Friday morning, the price of gold was lower. The precious metal had already begun to slide due to geopolitics.
“Even before U.S. retail sales came out, the news out of Ukraine right now, with the talk of a peace deal, had it weak late yesterday,” said the analyst. “Then you get as big of a [retail sales] miss as we saw; it adds to the case that the Fed will not cut rates in March, so a little bit of a pullback.”
“But if anything, from what I’m hearing this morning and seeing in activity, [the market] is patiently waiting to add to positions,” said the analyst. “You aren’t seeing any selling entering the market. I don’t know where the traders are currently.”
Haberkorn stated that a Ukraine-Russia peace agreement would be fantastic news; however, it’s not what the gold market is following. “I think the main catalyst for gold right now is just all the questions out there in global monetary policy and the concerns about what’s going on with this gold being moved out of London and Europe to the U.S., to Comex vaults,” he added. “It’s got everybody’s ears up and wanting to be in gold for it to trade north of $3,000.”
He added that the flow of gold in the United States—and the price hikes behind them—have some market players looking beyond the $3,000 mark per ounce.
“I’m hearing calls, people talking about $4,000 coming down the pipe here,” the analyst said. “You don’t hear it talked about as much as some of the other stuff going on, but the global market right now, with the repatriation and the pace that we’re, could be in the cards right now.”
“The next month or so is going to be pretty interesting for gold,” Haberkorn said. “Let’s check out how high and how fast we can go. I’m sure we’ll reach $3,000 if the pace moves. Will it happen within the initial or the second quarter of this year? I’m sure most people are excited about gold, and the current dip is an opportunity to build positions.”
The week before, fourteen analysts participated in an analysis conducted by the Trading User Platform News Gold Survey. Wall Street’s bullish stance returned to Earth after several weeks in the upper reaches of the atmosphere. Ten experts (72%) anticipate the price of gold will rise in the coming week, while two analysts, which is 15%, forecast an increase in the cost of the precious metal. Two others predicted consolidation for gold prices next week.
The vote was cast by 201 in the Trading User Platform online poll, which included Main Street investors also pulling back on their recent optimism but remaining firmly optimistic about the future of gold. Retail traders 131, 66%, were looking for the price of gold to rise in the coming week, and another 48 (25%) predicted that gold would be lower. Other investors, making up 12 percent of the market, believed that gold would be trending sideways soon.
Weekly Gold Survey – Feb 17-21, 2025
| Wall Street | Main Street | |
| Bullish | 12 | 15 |
| Bearish | 25 | 16 |
| Neutral | 66 | 72 |
After this week’s tense mix of news-making and market-moving drama, the week ahead promises to be lighter and less tense as US markets close on Monday to celebrate Presidents’ Day.
Highlights will include the Empire State Manufacturing Survey on Tuesday, the minutes from the Federal Reserve’s most recent meeting of its monetary policy, US Housing Starts and Building Permits on Wednesday, Thursday’s morning publication of US weekly jobless claims, the Philadelphia Federal Reserve Manufacturing Survey and the S&P Flash PMI, and US Existing Home Sales on Friday.
Marc Chandler, managing director of Bannockburn Global Forex, thinks gold is nearing a high. “Gold failed to make a new high at the end of last week, despite the US dollar’s pullback and softer US rates,” said the director. “I suspect it means a correction/consolidation may be at hand. The support is in the $2855-65 region.”
“Talk of US returning to gold standard still just talk,” He added. “It will likely take years to get it done. The revaluation of US gold is just an accounting process, and one should not assume that the US will likely eventually sell the gold. In this case, there’s no reason to change the value of the books until they are sold. Perhaps Silver can play a bit catch-up.”
Adam Button, head of currency strategy at Forexlive.com, sees several reasons to question gold’s capacity to maintain its recent gains.
“$3,000 should act as a magnet here, but it’s not as high as it was,” said the analyst. “The possibility is that we’re near the close of the season of strength, and that’s an excuse to get a little off the table. You don’t have to be averse to taking a little away from the tables… It’s been an incredible run.”
Button added that he’s also seen an occasional divergence between markets regarding Trump’s tariffs. “You have many markets saying that tariffs aren’t a real problem,” Button declared. “And you’ve got the gold market believing that tariffs are imminent. It’s logical to take a bit off in gold since markets tell the opposite story.”
“It also makes sense that you’d want to hedge it in gold,” the analyst said. “Gold might be a possible tariff trade in the coming months, but we’ll see where tariffs are after that. Gold is a good investment if you’re looking to secure refuge from tariffs; however, it won’t last forever. The chances of tariffs decreasing.”
“I like the trend, but I just think too many questions are popping up,” Button declared. “I’d like to see $3,000; however, we’ve had a great run here. What’s our total with $2,880? It’s not enough.”
“Holding but nervous that we’re in a cyclical time frame for a top,” said Mark Leibovit, the publisher of VR Metals/Resource Letter.
Trading User Platform and Trading User Platform Senior Analyst Jim Wyckoff expects the price of gold to increase shortly. “Higher on safe-haven demand, bullish charts,” the analyst declared.
When this was written, spot gold was last traded at $2,883.36 per ounce. This is a loss of 1.54 percent on the day but a gain of 0.76 percent over the week.
Read Also
