Weekly Market Recap: February 3 – 9, 2025

Overview

The gold market experienced a significant surge during the week of February 3 to 9, 2025, with prices approaching the $3,000 per ounce mark. This upward momentum was primarily driven by escalating trade tensions and investor concerns over the global economy.

Price Performance

Gold prices rose for the sixth consecutive week, with spot gold reaching an all-time high of $2,882.16 per ounce on Wednesday, February 5. By Friday, February 7, spot gold was trading at $2,866.58, marking a weekly gain of over 2%. 

Key Drivers

1. Trade War Escalation: The U.S. government’s decision to impose 25% tariffs on steel and aluminium intensified trade tensions, prompting investors to seek safe-haven assets like gold. 

2. Central Bank Policies: Major central banks continued to purchase gold, contributing to increased demand. Analysts suggest that geopolitical tensions and economic uncertainties are likely to sustain this demand. 

3. Economic Indicators: Market participants closely monitored the U.S. employment report released on February 7. The data provided insights into the Federal Reserve’s future interest rate decisions, influencing gold’s appeal as a non-yielding asset. 

Market Outlook

Analysts from Goldman Sachs have indicated an upside risk to their $3,000 target for gold, citing ongoing U.S. policy uncertainties and increased investor demand. The consensus among market observers is that gold prices may continue to rise, driven by persistent economic and geopolitical uncertainties. 

Conclusion

The past week underscored gold’s role as a safe-haven asset amid escalating trade tensions and economic uncertainties. Investors are advised to stay informed about global economic developments and central bank policies, as these factors are likely to influence gold prices in the near term.