Today gold futures hit another new record surging above the $2,900 level. Silver futures have broken above $33 for two consecutive trading days but remain below the key breakout at $35.
February 5 (King World News) – Gerald Celente: The April gold futures contract on the New York Mercantile Exchange set a new record of $2,853.20 during trading on 30 January and closed the day at $2,845.20. The old record of $2,800.80 was set in late October 2024.
The latest jump came the day after the U.S. Federal Reserve said it would hold its interest rates steady for now.
Interest-rate speculators are pricing in at least two cuts by the U.S. Federal Reserve this year. Lower rates mean interest-paying investments are less appealing, giving gold another boost.
Investors also moved to gold as treasury yields fell and the dollar weakened on fourth-quarter U.S. growth estimates that were less strong than expected. (See “U.S. Economy Grew 2.8 Percent in 2024” in this issue.) The uncertain impact of new U.S. trade tariffs also prompted some investors to seek a safe haven. The weaker dollar also makes gold cheaper to buy.
Gold futures added 7.8 percent to their price in January and are set to gain even more now that Donald Trump has assumed the presidency, MUFG analysts wrote in a note…
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Since the U.S. election, market players—especially in the U.S.—have been buying bullion from central banks that store their gold in a London depository. Bullion purchases have traditionally been exempt from tariffs but Trump has not said if he will respect that norm.
As a result, U.S. traders have been stockpiling bullion through New York’s Comex commodity exchange. Inventories there have soared 75 percent to about $85 billion worth since Trump’s re-election, Comex data shows.
The run on gold in the U.S. has prompted traders in other countries to grab a share before more disappears from storage. As a result, the London Metal Exchange now lacks enough bullion to meet demand. The Bank of England has an eight-week lag time for requests to buy its gold.
The metal’s price will top $3,000 at some point this year, Peter Cardillo, chief market economist at Spartan Capital Services, has forecast.
“We anticipate that gold will continue to perform well in 2025 due to the many uncertainties in the world and the ongoing desire for a store of value independent of other assets,” Ryan McIntyre, a managing partner at asset manager Sprott, wrote in a note.
TREND FORECAST:
As forecast in The Trends Journal back on 2 January 2024, we said it would be a “Golden Year for Gold.” Indeed, it was, with gold prices spiking some 25 percent last year.
Again, as we say in the trend forecasting business, there are too many wild cards—be they made by humans or nature—to “predict” the future.
Therefore, with President Donald Trump stance on tariffs and fear of a trade war which will spike inflation, the Joker-is-Wild Trump Card, keeps driving up gold prices.
Indeed, while the gold April futures hit $2,785 when this article was written last Friday, as we go to press, spot gold is trading at $2,845 per ounce!
While there will be a downside in the gold market, we maintain our forecast that there will be a continuing upside since no one can predict what Trump Card will be played next.
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Gold Price Hits All-Time High!
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