Gold Reaches New Highs as Stocks Sell Off.
Last week, gold faced selling pressure as investors took profits, yet it still managed a modest weekly gain. Meanwhile, equities advanced, driven by surging tech stocks. This week’s trading was shortened, as the New York Stock Exchange and bond markets were closed Monday in observance of Presidents’ Day.
Gold began the trading week at $2,895 and climbed 1% to $2,930 on Tuesday, fueled by safe-haven buying amid uncertainty over President Trump’s proposed tariff policies. On the same day, U.S. stocks staged a late-session rally, with the S&P 500 briefly touching a record high of 6,129.49 as shares of tech giants like Intel and SMCI surged.
Equities continued their climb on Wednesday as investors digested President Trump’s proposal for 25% tariffs on select European trade partners. Meanwhile, Wall Street analyzed the latest Fed meeting minutes, which revealed that a majority of officials favor a more restrictive policy stance due to persistent inflation. Despite the hawkish Fed stance, the S&P 500 rose another 0.5% to a fresh record high. Elsewhere, gold retreated from its own record level after the dollar index rose 0.2%, making gold more expensive for foreign currency holders.
On Thursday, sentiment shifted following a cautious outlook from Walmart for fiscal year 2026. After releasing its earnings report and guidance, Walmart’s stock slid 6%. Meanwhile, gold surged to a new all-time high of $2,954 following reports that President Trump may impose tariffs on key imports, including lumber, semiconductors, and pharmaceuticals. Silver also gained momentum from safe-haven demand, reaching a one-week high of $33.19.
This morning, gold eased as investors booked profits but remains 1.2% higher for the week at $2,933. Gold is on track to notch its eighth consecutive weekly gain, while silver is up 1% for the week, trading at $32.51 an ounce.
Stocks sold off this morning after downbeat economic data from the University of Michigan's consumer sentiment index, which fell 10% to 64.7 in February. Additionally, existing U.S. home sales declined more than expected in January, dropping to 4.08 million units versus economists’ forecasts of 4.13 million. Following the news, the Dow shed 700 points, marking a 2.89% weekly downturn. The S&P 500 and Nasdaq also slipped, posting respective weekly losses of 1.67% and 2.18%.