Front-month gold futures retreated following the establishment of a new record yesterday, reaching $3,040 per troy ounce. The contract declined by 0.7% to $3,018.20 per ounce on Friday; however, it concluded the week with a net gain. According to Kieran Tompkins of Capital Economics, analysts have linked the surge in gold prices to increased concerns over a potential U.S. economic recession; however, historical data does not convincingly corroborate this assertion. “The recession induced by COVID-19 in 2020 was notably distinct, characterized by a significant price rally during that timeframe,” states Tompkins. “Nonetheless, it exhibited a relatively stable trajectory during the recessions of the early 2000s and late 1980s.”
Comex Gold concludes the week with an increase of 0.79%, settling at $3018.20. This week, the front month Comex gold contract for March delivery experienced an increase of $23.70 per troy ounce, reflecting a rise of 0.79%, bringing the price to $3018.20. Increased for three successive weeks & Gained $181.40, reflecting a rise of 6.39% over the past three weeks.Currently experiencing a decline of $21.80, equating to a decrease of 0.72%. The fourth highest closing value recorded in history marks the end of an eight-session winning streak.

Base metal prices have experienced a decline, while copper continues to hold a strong position amid concerns regarding tariffs. Prices for base metals have declined, as evidenced by a 0.5% decrease in LME three-month copper, now priced at $9,855 per metric ton, and a 1.1% drop in LME three-month aluminum, which stands at $2,627.50 per ton. Copper has increased by 0.6% over the week, driven by ongoing concerns regarding potential U.S. import tariffs that are influencing market sentiment, according to a note from Neil Welsh at Britannia Global Markets. Simultaneously, copper prices on the U.S. commodity exchange Comex are nearing historic highs, with the copper arbitrage continuing to be a significant point of interest in the market, according to Welsh. Investors seem to be shifting their capital away from technology stocks and cryptocurrencies towards gold and industrial metals, in pursuit of stability in the face of inflationary pressures and geopolitical uncertainties, according to Welsh. The constriction of supply coupled with an ongoing shortfall in copper concentrates may contribute to the maintenance of high price levels, he notes.

Gold futures remain stable following a peak, amid ongoing concerns regarding a slowdown in the U.S. economy. Futures remain stable at $3,043.20 per troy ounce, maintaining proximity to the recent peak of $3,065.20 per ounce established on Thursday. The precious metal experienced an uptick as U.S. yields and the dollar declined in the aftermath of Wednesday’s Federal Reserve meeting, according to analysts at SP Angel in a recent note. The Federal Reserve’s most recent economic forecasts indicated an increase in both unemployment and inflation expectations, while also warning of a potential slowdown in growth. Gold prices are being bolstered by current market dynamics, particularly as trade tensions escalate. Attention is now directed towards the upcoming U.S. reciprocal tariff implementations scheduled for April 2, according to SP Angel.

Gold futures have declined, yet they continue to hover close to record highs, influenced by a depreciating dollar and rising geopolitical tensions in the Middle East. Futures have declined by 0.2%, currently priced at $3,038.70 per troy ounce, yet remain close to the record high of $3,065.20 per ounce established on Thursday. The dollar faces downward pressure due to disappointing economic indicators, which is contributing to an upward trend in gold prices, according to a note from XS.com’s Linh Tran. The escalating burden of U.S. federal debt has heightened financial risks significantly. Geopolitical tensions are on the rise, as the Israel-Hamas conflict deepens and the economic discord between the U.S. and China prompts investors to seek refuge in gold as a secure investment avenue, Tran observes. The market is currently attentive to the monetary policy of the U.S. Federal Reserve. Should the Fed take a more accommodating approach to interest rate reductions, it could lead to an increase in gold prices, she notes.

Gold prices are likely to experience a period of consolidation in the short term, according to Kelly Chung, chief investment officer for multi-assets at Value Partners. Following slight adjustments from previously overbought technical indicators, gold prices have reached a state of stabilization and continue to enjoy robust support, as noted by her analysis. Market participants are increasingly acquiring gold as a safeguard against the unpredictability surrounding Trump’s policy decisions, while central banks are also accumulating gold to reduce their reliance on the U.S. dollar. Over the long run, increased geopolitical risks are likely to bolster the outlook for the precious metal. Investors express apprehension regarding the trend of de-dollarization, suggesting that the significance of the dollar as a global trade currency may be diminishing, she notes. Spot gold has decreased by 0.5%, currently priced at $3,028.84 per ounce. monica.gupta@wsj.com
The bullish trajectory of Comex Gold Futures remains intact, as indicated by the daily chart analysis.

According to Joseph Chai of RHB Retail Research, the upward trend in Comex gold futures remains firmly established. Notwithstanding the emergence of bearish candlesticks on the daily chart, the commodity is poised to approach the $3,000/oz threshold, according to the analyst’s research report. The momentum indicator remains aligned with a positive market sentiment, as the relative strength index sustains its position above the 50% mark, according to Chai. The futures contract continues to trade above the upward-trending 20- and 50-day simple moving averages, which reinforces the bullish technical configuration, according to the analyst. The analyst indicates that immediate support is currently established at $3,000 per ounce. Spot gold has decreased by 0.4%, now trading at $3,031.05 per ounce.