1. Sen. Rand Paul is inviting Elon Musk to come to his state of Kentucky to review the largest reserves of gold in the U.S. The Department of Government Efficiency (DOGE) to set his sights on Fort Knox to make sure the U.S. supply of gold is still in its reserves. Musk questioned why the gold supply is not reviewed every year, leading to speculation that he could investigate the military base with the fortified vault full of U.S. gold. The Bullion Depository holds roughly 147 million troy ounces of bulk gold, which represents over half the gold held by the U.S. federal government or 56.35 percent of the total. Gold reserves in the U.S., just like all gold reserves, act as a financial safety net against economic instability. It stores actual, tangible value and helps hedge against inflation with the intention of maintaining public confidence in the nation’s currency. The last inspection of the gold coffers was conducted in 1974, there was also one in August 2017 when Kentucky Sen. Mitch McConnell brought a small group, including then-Treasury Secretary Steven Mnuchin, to the vault. A few very grainy black and white images of Mnuchin in the vault were released after the visit in front of what the public is told are golden bars. The aforementioned 1974 inspection came in response to a circulating conspiracy theory at the time that claimed elites had secretly removed the gold and the vaults were actually empty.
2. Federal Reserve Governor Michelle Bowman said on Monday she wanted increased conviction that inflation will decline further this year before lowering interest rates again. “I would like to gain greater confidence that progress in lowering inflation will continue as we consider making further adjustments.” The benchmark interest rate “is now in a good place, allowing the committee to be patient and pay closer attention to the inflation data as it evolves,” she said, referring to the Fed’s policy-setting Federal Open Market Committee. Holding rates steady for now “also provides the opportunity to review further indicators of economic activity and get further clarity on the administration’s policies and their effects on the economy,” she said. “It will be very important to have a better sense of these policies, how they will be implemented, and establish greater confidence about how the economy will respond in the coming weeks and months.”
3. The U.S. dollar has surged over the past six months, and its rapid rise has impacted a slew of corporate earnings so far this season. Companies ranging from Big Tech behemoths to consumer-facing brands have mentioned foreign-exchange headwinds in both their fourth quarter results and forward-looking guidance, a trend that analysts previously warned could occur. Historically, a strong dollar adversely impacts companies that do most of their business overseas. That’s because it leads to slower revenue and earnings growth over time, due to unfavorable foreign-exchange conversions. The greenback’s positive price action has largely been driven by two main catalysts: President Donald Trump’s election and the subsequent Republican sweep; and the recalibration of future easing by Federal Reserve in light of strong economic data. After hitting a September low, the Dollar Index has rallied over 7% and is hovering near the two-year highs it reached in January. The index, which measures the dollar’s value relative to a basket of currencies (the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc) — has climbed by around 4% since the presidential election.
4. Canadian consumer prices reaccelerated for the first time in three months as the central bank’s preferred core measures are proving sticky. The consumer price index rose at a faster yearly pace in January, rising 1.9% and up from 1.8% in December. The slight acceleration, which matched the median economist estimate in a survey, was largely driven by increased energy prices, while a temporary sales tax break helped slow price pressures for food and restaurant meals. Excluding gasoline, the headline number rose 1.7% in January, down from 1.8% earlier. On a monthly basis, the index rose 0.1% that month, compared with a 0.4% decline in December.
5. U.S. homebuilder sentiment tumbled to a five-month low in February amid worries that tariffs on imports would combine with higher mortgage rates to further drive-up housing costs. The National Association of Home Builders/Wells Fargo Housing Market Index plunged five points to 42 this month, the lowest reading since September. New home construction is heavily reliant on imported materials, including lumber, as well as other goods like household appliances. The decline in homebuilder sentiment mirrored a decrease in consumer sentiment. The nation is facing a housing shortage, which has boosted rents and contributed to elevated inflation. The average rate on the popular 30-year fixed-rate mortgage is hovering just under 7%. Residential spending rebounded in 2024, lifted by single-family home construction as builders took advantage of a shortage of previously owned homes for sale.
6. The number of Americans filing new applications for unemployment benefits increased moderately last week, suggesting that the labor market remained on solid ground. Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 219,000 for the week ended February 15, the Labor Department said on Thursday. Economists polled had forecasted 215,000 claims for the latest week.
7. Oil prices fell 2% on Friday but were still on track for a weekly gain on supply disruptions in Russia while uncertainty loomed over a potential peace deal in Ukraine. Brent futures fell $1.42, or 1.9%, to $75.06 a barrel by 10:48 a.m. ET (1548 GMT), while U.S. West Texas Intermediate crude fell $1.46, or 2%, to $71.02. Both benchmarks are set to gain 0.4% this week. Brent would be marking a second week of gains after three weeks of declines. WTI is set for its first week of gains after four weekly declines.
8. EUR/USD slides to near 1.0460 in Friday’s North American session. The major currency pair weakened after the release of the Hamburg Commercial Bank’s preliminary Purchasing Managers Index (PMI) data for February for the Eurozone and its major nations. The Eurozone HCOB PMI report, compiled by S&P Global, showed that overall business activity expanded at a steady pace but slower than expected. The Composite PMI read 50.2 against estimates of 50.5.
9. Ever since USD/JPY recovered back above the 150.00 level last October, there hasn’t been much time in the pair below that price. There was the test in early-December, but that was short-lived as bulls quickly came back, helped along by the FOMC meeting in the middle of that month that saw the pair make another run at the 160.00 handle. But notably, ever since the U.S. Dollar set its current high on January 13th, USD/JPY has taken on a new trend with a consistent series of lower-lows and highs. Today marks another waypoint along the way, as the pair has put in its first test below the 150.00 level in more than two months.
Gold climbed to a new all-time high on Thursday, just a stone’s throw away from the $3,000 level against a backdrop of ongoing geopolitical and tariff risks, as well as indications from President Donald Trump that the U.S. intends to verify how much gold it has stored. Gold futures touched an intraday high just beyond $2,973 per ounce before paring gains, while cash market gold surpassed a record $2,954 an ounce. Uncertainty over attempts at a deal to end the Ukraine-Russia war also helped send the price of bullion higher. Trump’s comments about verifying how much gold the U.S. has stored in Fort Knox may also be fueling speculation of higher gold prices. “We’re going to go to Fort Knox — the fabled Fort Knox — to make sure the gold is there,” President Trump told reporters on Wednesday aboard Air Force One.
U.S. existing home sales dropped more than expected in January after three straight monthly increases as high mortgage rates and house prices stifled demand. Home sales decreased 4.9% last month to a seasonally adjusted annual rate of 4.08 million units, the National Association of Realtors said on Friday. Economists polled had forecasted home resales slipping to a rate of 4.12 million units. Sales likely reflected contracts signed in November and December. The average rate on the popular 30-year fixed mortgage increased from 6.72% at the end of October to 6.85% in the final week of December, data from mortgage finance agency Freddie Mac showed. Home resales increased 2.0% year-on-year in January.
Nearly half of the companies in the S&P 500 are outperforming the index to start the year, a stark reversal from the last two years of narrow market leadership where investors struggled to find winning stocks outside of large-cap technology. About a month and a half into 2025, 46% of companies in the S&P 500 are outperforming the index itself. That’s above the roughly 30% seen in each of the last two years, which had been the lowest percentage of outperformers since the late 1990s. Strategists believe an environment where more stocks are competing to outperform the index is set to persist throughout the year. Goldman Sachs chief equity strategist David Kostin wrote in a recent note to clients that the current market is more “micro driven,” meaning company-specific details are influencing stock moves more than broad factors.
Volatility should be expected to remain high as investors will be closely watching for hints on the upcoming monetary policy direction. Many investors have redoubled their efforts to ensure that their portfolios are sufficiently diversified in the hope that they will be able to withstand corrections in multiple market sectors. Many of these investors have included physical precious metals as part of their diversification plans, given their long history as a hedge against both inflation and during times of economic turmoil. Remember, the key to profitability through the ownership of physical precious metals is to own the physical product and hold it for the long term. Always remember that you should never overextend your ability to maintain ownership of your precious metals over the long run.
Trading Department – Precious Metals International Ltd.
Friday to Friday Close (New York Closing Prices)
| Feb. 14, 2025 | Feb. 21, 2025 | Net Change | ||
| Gold | $2,887.07 | $2,936.85 | 49.78 | 1.72% |
| Silver | $32.41 | $32.64 | 0.23 | 0.71% |
| Platinum | $986.17 | $973.43 | -12.74 | -1.29% |
| Palladium | $989.68 | $980.10 | -9.58 | -0.97% |
| Dow | 44545.46 | 43428.02 | -1117.44 | -2.51% |
Previous Year Comparisons
| Feb. 23, 2024 | Feb. 21, 2025 | Net Change | ||
| Gold | $2,037.90 | $2,936.85 | 898.95 | 44.11% |
| Silver | $22.98 | $32.64 | 9.66 | 42.04% |
| Platinum | $905.35 | $973.43 | 68.08 | 7.52% |
| Palladium | $989.51 | $980.10 | -9.41 | -0.95% |
| Dow | 39131.86 | 43428.02 | 4296.16 | 10.98% |
Here are your Short-Term Support and Resistance Levels for the upcoming week.
| Gold | Silver | |
| Support | 2893/2844/2805 | 32.26/31.10/30.06 |
| Resistance | 2982/3021/3054 | 33.30/34.46/35.50 |
| Platinum | Palladiumn | |
| Support | 961/943/917 | 977/943/925 |
| Resistance | 1005/1031/1049 | 995/1029/1047 |