The yellow metal recovered most of its losses during Wednesday’s trading session after recording its largest daily decline of 2021, regaining the $3,330 level in mid-European trading on Thursday, the 24th, benefiting from the decline in the US dollar amid market anticipation of US unemployment benefits figures and durable goods sales less than an hour later.
Gold prices have become more volatile amid trade tensions and tariff announcements. Investors are buying safe havens, led by gold, as tensions rise, and the buying wave subsides with any optimism, especially regarding any talks between the US and China. The decline in the US dollar and US Treasury bonds, which are experiencing a massive sell-off, is another factor supporting the yellow metal’s rise, given the inverse relationship between the dollar and gold. We have seen gains of more than 25% for the yellow metal since the beginning of the year, compared to an 8% decline in the US dollar index and a decline in bonds, with the 30-year US Treasury yield reaching its highest level since November 2023.
Meanwhile, investment institutions and companies continue to raise their forecasts for gold prices this year, with JPMorgan raising its forecast to $3,675 per ounce this year and to $4,000 by the second quarter of next year. Gold experienced a strong sell-off during Wednesday’s trading session, recording its largest daily decline since June 2021, as concerns about tariffs receded following news that the US administration would reduce tariffs on Chinese imports to between 50% and 65%, and Trump’s comments regarding the US Federal Reserve’s exploitation. Gold lost $125 during the session, testing the $3,260 level before investors bought into the decline and regained the $3,300 level this morning, with the US Treasury Secretary stating that Trump did not offer to unilaterally reduce tariffs on China.
The US dollar index lost about 0.60% and traded at 99.11 midday today, amid anticipation of weekly unemployment benefits figures and durable goods sales for March. Sales are expected to rise by 2.1%, mitigating the decline in the US dollar. Gold is trading at midday today, Thursday, at $3,331 per ounce, up about 1.30%, while silver is down about 0.63% at $33.33 per ounce. Platinum is trading at $972, down about 0.07%, while palladium is down about 0.88% at $935.