Gold Posts a 2.3% Weekly Gain as Stocks Near Record Highs
Last week, gold posted a modest 0.6% gain following upbeat U.S. inflation data, which fueled investor optimism about potential rate cuts in 2025. This week saw fewer trading days on Wall Street, as the New York Stock Exchange was closed on Monday in observance of Martin Luther King Jr. Day.
Gold began the week at $2,708 and edged up by 0.7% to close at $2,726 on Monday, buoyed by thin trading and a weaker dollar. Silver mirrored gold's movement, posting a 0.8% daily increase to $30.64 an ounce.
U.S. stocks rallied on Tuesday as traders digested a series of executive orders signed during President Trump’s first full day in office, with the energy sector drawing particular attention. Notably, the S&P 500 breached the 6,000 level, while the Nasdaq Composite led major indices with a 1.2% daily uptick. Meanwhile, gold climbed to a two-month high near $2,752 as the dollar index continued to drift lower.
Wall Street equities extended their gains for a third consecutive session on Wednesday, with the S&P nearing its all-time high. Tech and AI shares provided broad support for major averages. On the same day, gold inched closer to a three-month high, as concerns over potential tariffs on Canada and Mexico spurred demand for safe-haven assets.
On Thursday, the S&P reached a new all-time high of 6,104.25 as investors reacted to comments from President Trump at the World Economic Forum in Davos, Switzerland, where he advocated for lower taxes, interest rates, and global oil prices.
Gold and silver consolidated on Thursday, facing some pressure from profit-taking and a slight rebound in the dollar, though losses remained limited. Meanwhile, stocks continued their rally as optimism surrounding the Trump administration’s policies permeated Wall Street. By the close, the S&P 500 rose 0.5%, setting a record closing high of 6,118.71.
Gold regained momentum this morning, climbing more than 1% amid continued dollar weakness and uncertainty surrounding President Trump’s tariff policies. By the end of today’s trading, gold was up 2.3% for the week, closing at $2,770. This marked gold’s fourth consecutive weekly gain, while silver managed a 0.7% weekly uptick, ending at $30.60 an ounce.
Major indexes on Wall Street snapped a four-day winning streak today as profit-taking and pullbacks in certain tech shares, including Nvidia and Tesla, weighed on the market. Despite today’s dip, Wall Street posted its second consecutive weekly gain. Most notably, the Dow Jones Industrial Average surged 2.6% this week, while the S&P 500 and Nasdaq recorded respective gains of 1.7% and 1.5%.