Gold prices are volatile due to the U.S. currency, inflation predictions, and geopolitical uncertainty. Several key economic developments in late February might impact gold prices. Here’s how each event could affect the market.
The first major event is President Trump’s speech on Feb 18, 2025. Markets will closely watch his remarks about U.S. economic strategy, fiscal stimulus, trade ties, or tariff preparations. If he favors low interest rates or delays tariffs, the currency might drop, making gold a more appealing store of wealth and potentially raising prices.
The FOMC meeting minutes on Feb 19, 2025, will reveal the Federal Reserve’s monetary policy outlook. A hawkish stance may lead to higher interest rates, supporting the U.S. currency and lowering gold prices. However, a dovish tone or delayed rate hikes due to economic concerns could boost gold.
The weekly jobless claims data on Feb 20, 2025, will show labour market and economic health. Lower claims might signal strong labour markets and a stronger economy, leading to higher interest rates and a stronger currency, which could lower gold prices. Higher claims may indicate weakness, prompting the Fed to reconsider tightening policy, potentially boosting gold.
The Flash Manufacturing PMI on Feb 21, 2025, will predict manufacturing activity and economic health. A strong PMI might boost market confidence, increasing bond rates and lowering gold demand. Conversely, a weak PMI could fuel fears about slower growth, encouraging investors to buy gold as a safe-haven asset.
These events will determine gold’s price in the coming weeks. Stronger-than-expected data may boost investor confidence in the U.S. economy, strengthening the currency and lowering gold prices. However, economic disappointment or weakness might propel gold higher.
Source: https://www.kitco.com/opinion/2025-02-17/economic-events-could-affect-gold-prices