Gold about to mark seventh monthly profit in row

Gold prices edged higher in European trading on Friday, maintaining gains for a third consecutive session near a four-week high and moving toward a seventh straight monthly advance, supported by safe-haven demand and a weaker US dollar in the foreign exchange market.

Although expectations for a Federal Reserve rate cut in March have declined, markets are waiting for further evidence on the direction of US monetary policy throughout this year.

Price Overview

• Gold prices today: Gold rose by 0.3% to $5,200.61 an ounce, up from the session open at $5,184.78, after touching an intraday low of $5,167.10.

• At Thursday’s close, gold gained 0.4%, marking a second consecutive daily increase and approaching a four-week high of $5,249.88 per ounce.

Monthly Performance

• Over the course of February — which officially concludes at today’s settlement — gold prices are up around 6.25%, on track for a seventh consecutive monthly gain, marking the longest winning streak in two years.

• The latest monthly rise is attributed to continued buying by central banks, institutions, and individual investors viewing the precious metal as a preferred alternative investment amid global geopolitical and economic tensions, as well as renewed concerns over US assets due to what markets see as unpredictable Trump policies.

US Dollar

The US dollar index declined by about 0.2% on Friday, reflecting weaker performance of the American currency against a basket of major and minor currencies.

This decline comes as the yield on the 10-year US Treasury fell to a three-month low amid increased demand for safe-haven assets, driven by renewed concerns about slowing global growth under the pressure of potential trade wars.

President Donald Trump’s State of the Union address in Congress added to market uncertainty, as it failed to provide sufficient reassurance regarding trade policy stability following the Supreme Court ruling that invalidated earlier tariffs.

US Trade Representative Jamieson Greer said on Wednesday that tariff rates on some countries could rise to 15% or more, compared with the recently imposed 10%, without specifying which trading partners would be affected or providing further details.

US Interest Rates

• Federal Reserve Governor Christopher Waller said he is open to keeping interest rates unchanged at the March meeting if February employment data indicates the labor market has “stabilized” after weak performance in 2025.

• According to CME Group’s FedWatch tool, markets currently price a 96% probability that interest rates will remain unchanged in March, with odds of a 25-basis-point cut at 4%.

• Investors continue to monitor incoming US economic data and comments from Federal Reserve officials to reassess these expectations.

Gold Outlook

ANZ market analyst Soni Kumari said there are two main factors supporting gold: ongoing uncertainty surrounding tariffs and the situation between Iran and the United States.

Linh Tran, senior market analyst at XS.com, said recent rounds of US-Iran talks failed to produce a clear outcome, keeping geopolitical risks present without leading to escalation.

Tran added that this has helped keep gold prices elevated, although it has not yet provided enough momentum to establish a sustainable upward trend.

SPDR Gold Trust

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by 0.28 metric tons on Thursday — marking the fourth consecutive daily increase — bringing total holdings to 1,097.90 metric tons, the highest level since April 26, 2022.