Gold Gains as Stocks End a Four-Week Losing Streak
Last week, gold breached the key psychological level of $3,000 as U.S. stocks suffered their worst week since 2023. This week, investor attention turned to economic data and the Federal Reserve’s two-day meeting, which was set to conclude with an interest rate announcement on Wednesday.
Wall Street equities climbed on Monday, marking back-to-back sessions of gains after a four-week slump driven by tariff concerns. On the same day, gold steadied near $3,012, while silver approached $34, as markets awaited the upcoming rate decision.
On Tuesday, Wall Street’s sell-off resumed, led by sharp declines in tech stocks, including Tesla (-5%), Nvidia (-3%), and Palantir (-4%). Meanwhile, gold extended its pre-session gains, rising 0.8% to reach $3,038. Silver followed suit, surging above $34 as safe-haven inflows increased amid investor concerns over the fragile Israel-Hamas ceasefire.
On Wednesday, the Federal Reserve announced that interest rates would remain unchanged. During his press conference, Fed Chair Jerome Powell acknowledged persistent inflation risks but stated that the U.S. economy was strong enough to sustain higher rates. Powell also signaled two rate cuts before the end of 2025.
Stocks surged following Powell’s remarks, with the S&P 500 and Nasdaq Composite climbing 1.1% and 1.4%, respectively. At the same time, gold hit a new all-time high of $3,049, supported by rate cut expectations and easing bond yields.
Wall Street’s rally met resistance on Thursday, despite better-than-expected jobless claims data. Gold also faced pressure, retreating 0.6% to $3,034 due to profit-taking, while silver dropped nearly 2% to close at $33.18.
This morning, precious metals eased under pressure from a stronger dollar. Still, gold ended the week 1.3% higher at $3,023. Silver, however, saw a more pronounced decline, finishing the week 2.5% lower at $32.92 an ounce.
Stocks eked out gains today, snapping their four-week losing streak. The session was marked by “quadruple witching,” as single-stock futures, index futures, and index options all expired. Among the three major averages, the Dow led with a 1.27% weekly gain, while the Nasdaq and S&P 500 recorded gains of 0.35% and 0.58%, respectively.