Posted 3rd February 2025

Gold Price News: Gold Holds onto All-Time Highs

Gold prices pushed higher on Friday, holding ground at Thursday’s new all-time high for the precious metal.

Prices rose as high as $2,820 an ounce on Friday, equalling Thursday’s peak – the all-time highest recorded gold price. 

Gold (KAU) price – $/g – on the Kinesis Pro exchange

The latest push into new territory for gold came as several central banks reduced interest rates last week, notably the Bank of Canada and the European Central Bank. Lower interest rates reduce the opportunity cost of holding non-interest-bearing assets.

And while the US Fed held rates unchanged last Wednesday as expected, gold’s safe haven appeal remains undiminished amid uncertainty over the economic and inflationary effects of expected US trade tariffs.

US GDP growth below expectations

Moreover, US GDP figures came out on Thursday showing growth of 2.3% for Q4, 2024, down from 3.1% in Q3, and well below expectations of 2.6%. Signs of a weaker-than-expected economy tend to drive additional demand for safe-haven assets such as precious metals.

Gold’s gains last week were all the more remarkable as they came in the context of a strengthening US dollar – normally a bearish element for dollar-denominated gold prices.

US demand draws gold from London

In addition, there have been recent concerns in the market about a significant shortage of physical gold bullion in the London market, triggered by increased deliveries to the US. Waiting times to get gold bars out of the Bank of England have increased from a few days to several weeks, according to news reports. Gold inventories in New York had been falling from 2021 to 2024 but that trend has gone sharply into reverse at the start of 2025, according to Comex data. The movement of gold across the Atlantic has been chiefly linked to worries over the impact of US import tariffs.

Upcoming data

Looking ahead, Monday will bring Euro Area inflation figures for January, followed by US ISM manufacturing PMI figures for January. Those will be followed on Tuesday by US factory orders and US JOLTs job openings for December, for the latest health-check on the US economy.

Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.

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