Gold

Gold futures reached unprecedented heights on Thursday, with the June contract smashing through the $2,200 an ounce barrier to trade at a staggering $2,233 per ounce as of 6 PM EDT in New York. This remarkable surge propelled the precious metal to its highest value in history, fueled by a confluence of factors that have ignited a buying frenzy among investors.

As of 4:50 PM EDT, gold futures basis most active April contract (GCJ24) is currently up $5.90 or 0.27% and fixed at $2177. 

Gold prices recovered today after falling on both Thursday and Friday of last week. Gold gained $6.50 basis of the most active April contract in New York and Globex. Gold futures have resumed trading now in Australia and are currently trading right around the close of Globex at $2173.90.

April gold futures settled down $6.30 or 0.29% to close at $2183.30. Today gold opened at $2183.40, traded to a high of $2188, and is currently fixed at $2166.50 down $16.80 or 0.77% after making a new record high earlier in the week.

Right after this month’s FOMC meeting concluded and Chairman Powell held his regular press conference gold began to move into uncharted territory. As of 5:40 PM EDT, gold futures basis most active April contract is currently fixed at $2183.80 which is a net loss of $6.30, or 0.29% today. However, the history that was made today was not in gold’s closing price but rather its intraday high.

Investor’s long-awaited update regarding the Federal Reserve’s plan to cut its benchmark interest rate (Fed funds) is finally over, and financial markets overwhelmingly welcomed what the Fed revealed today.

As investors eagerly await the conclusion of the Federal Reserve's Federal Open Market Committee (FOMC) meeting tomorrow, all eyes are on the potential impact on the price of gold. The FOMC, the monetary policymaking body of the Federal Reserve, is set to announce its decision on current monetary policy, including the possibility of interest rate cuts later this year.

Today gold futures had moderate gains of $4.50. Gold futures basis most active April contract opened at $2159.90, traded to a low of $2149.20, and is currently trading in Australia up an additional $1.90, and when added to the $4.50 gain in New York is fixed at $2165.80.

A primary purpose of holding or investing in gold is to protect one’s portfolio against high inflation. It has always been considered an inflationary hedge. Simply put, one can extrapolate that if interest rates remain elevated or spike higher it will provide bullish tailwinds supportive of higher gold pricing. 

Prices that producers charge (PPI) for their goods in the U.S. spiked higher by 0.6% last month, double the rise in January of + 0.3%. According to the Bureau of Labor Statistics, the final demand index (what consumers pay for a product) rose by 1.6% year-over-year, the largest rise since moving up 1.8% year-over-year in September 2023.