Gold prices experienced an increase on Friday, following dovish signals from the Federal Reserve that led to significant gains in metal markets throughout the week, while silver remained near its record highs. At 07:45, spot gold increased by 1.2% to $4,330.02 per ounce, while gold futures for March also saw a rise of 1.2%, reaching $4,366.65 per ounce. Spot gold experienced an increase of approximately 3% this week, with a significant portion of the gains attributed to the Federal Reserve’s anticipated interest rate cut and a less aggressive stance on monetary policy. Chair Jerome Powell indicated a higher threshold for future rate cuts, yet he conveyed a significantly less hawkish perspective than what markets had anticipated, and the announcement that the Fed will commence purchasing shorter-dated Treasuries at a rate of $40 billion per month, effective immediately, was pivotal to this development.

The Federal Reserve’s asset purchasing initiatives are anticipated to enhance market liquidity and ease monetary conditions domestically, thereby elevating the attractiveness of speculative assets. Other metal prices also increased on this premise. Spot platinum increased by 3.1% to $1,775.10 per ounce, with a weekly rise exceeding 6%. In the realm of industrial metals, benchmark copper futures on the London Metal Exchange experienced a minor decline, settling at $11,798.65 per ton, while reflecting a weekly increase of 1.3%. There is a prevailing sense of optimism regarding the potential for additional stimulus measures in the leading copper importing nation, and China has positioned LME futures for a third consecutive week of gains.

Silver exhibited significant outperformance this week, driven by a combination of speculation regarding a supply shortage, consistent demand as a safe haven, and a dovish outlook on U.S. interest rates, all of which contributed to the rise of the white metal. Spot silver exhibited minimal fluctuations, holding steady at $64.560 per ounce, and is positioned near its peak of $64.953 per ounce. Spot prices are on track for an increase exceeding 9% this week, marking their third consecutive week of gains.

Silver has experienced a significant increase in value this year, driven by a variety of contributing factors. The white metal provides a refuge from market fluctuations akin to gold, yet at a significantly reduced cost, and the rally in silver prices was largely propelled by this concept. Recently, the anticipation of a supply shortage in 2026, coupled with the U.S. government’s designation of silver as a critical metal, has led to significant increases in spot prices.