NEW YORK: Gold traded back above the $5,000 an ounce level this week, with spot prices around $5,078 as a softer U.S. dollar coincided with renewed demand for the metal. The move followed sharp swings since late January, when gold reached record territory before pulling back in early February. On Tuesday, spot gold eased to about $5,030.80, still holding above $5,000.
The latest rebound came after gold briefly slid to roughly $4,400 in early February, according to market pricing cited in the latest updates. Gold’s recent high-water mark was $5,594.82 on January 29, when prices touched an all-time peak before reversing lower in the same session. The metal has since traded in a wide range, reflecting fast shifts across currency and precious metals markets.
U.S. gold futures also returned to the $5,000 range, with the most-active April contract settling at $5,079.40 on Monday. By Tuesday, that contract was quoted near $5,051.70 as prices cooled from the prior session’s surge. Spot and futures prices can diverge because of contract terms and timing, but both measures showed gold retaining gains after reclaiming the milestone level.
Moves in the U.S. dollar were a central feature of the week’s trading. The ICE U.S. Dollar Index was reported near 96.874 after a sharp decline, before the dollar steadied and edged higher in the next session. Because gold is typically priced in dollars, a weaker greenback can lower the metal’s cost for buyers using other currencies, while a firmer dollar can have the opposite effect.
Central bank reserves
Central bank data also remained in focus. China’s central bank reported its gold holdings at 74.19 million fine troy ounces at the end of January, up from 74.15 million in December, extending a monthly increase streak to 15 months. The reported value of those reserves rose to $369.58 billion from $319.45 billion in the prior month, reflecting the higher market price of gold.
Gold’s pricing ecosystem includes multiple benchmarks used by traders, refiners, jewelers and investors. Alongside the live spot market, the London Bullion Market Association’s gold price is widely used as a reference point for contracts and valuation. Market participants also track regional prices and futures contracts for hedging and settlement, which can lead to different headline figures depending on venue and timing.
Other precious metals
Silver, platinum and palladium also moved sharply. Silver traded around $82.86 an ounce after a strong rebound, then slipped to roughly $81.63 in the next session; it had earlier hit a record $121.64 on January 29. Platinum was last reported near $2,112.56 before easing toward $2,080.30, while palladium was around $1,727.75 and later near $1,721.75, based on the latest available spot quotes.
Markets were also tracking scheduled U.S. economic releases this week, including retail sales, nonfarm payrolls and inflation figures, which are widely followed by traders assessing interest-rate conditions and the dollar’s direction. Gold, a non-yielding asset, is often traded alongside shifts in currency markets and interest-rate expectations, and recent price action showed sensitivity to both as bullion stayed above $5,000. – By Content Syndication Services.