Gold prices increased by over 1% today and have surged nearly 8% since mid-February, marking a steady recovery as both cryptocurrency and equity markets show signs of cooling.
This rise comes as gold approached the $5,250 mark, steering towards a seventh consecutive month of gains. Earlier this year, gold reached a historic peak of around $5,600 in late January amidst heightened geopolitical tensions involving the US and Iran. The crude conflict, fueled by Iran's crackdown on protests and the US's military preparations, significantly boosted demand for gold as a safe-haven asset.
After this January high, a steep decline ensued as February began. Gold lost more than 21%, dropping to nearly $4,400, while silver experienced a staggering fall of about 46%, plummeting from $121 to $64. However, recent weeks have seen a robust recovery. Silver prices increased by more than 6% today and have rebounded over 28% since mid-February, reaching a new monthly peak around $94.
Spot platinum also experienced positive momentum, climbing 3.5%, now valued at $2,352 an ounce, while palladium saw a minor rise of 0.1%, settling at $1,785. Both platinum and palladium are showing promising monthly advancements.
In contrast, the recovery in metals starkly contrasts the stagnation observed in digital currencies and equities. Bitcoin has fluctuated between $65,000 and $70,000 throughout February, having briefly dipped below $60,000 earlier. Currently, Bitcoin is trading close to $65,500, reflecting a 2.8% decrease for the day.
The pressure on US equities persists, with the S&P 500 reeling a 0.8% drop, and the Nasdaq down 1.1%, driven by weakness in significant tech stocks. Notably, Nvidia's shares have tumbled approximately 9% since Wednesday, despite posting better-than-expected earnings. Similar downtrends are evident across major tech players such as Meta, Amazon, and Alphabet, as investors express concerns regarding expected capital expenditures for AI, projected to exceed $770 billion by 2026.