As February comes to a close, gold is off to a strong start in March. March opens up with a strong gold rally with gold hovering near a month high at $2,050 at the end of last week. On Friday, gold was up $36 again, hitting $2,080 per ounce, which is the highest daily close since December. The last time gold hit an all-time high was back in December at $2,135 per ounce briefly before dropping back down below $2,100. Gold has never traded above $2,090 during the day. This week, gold kept breaking records. Starting on Monday, gold reached a record high of $2,110 after the softer-than-expected economic statistics pushed the dollar down. Gold was up another $22 on Tuesday and trading around the $2,130 range and it was the third day of straight gains since last week. On Wednesday, gold passed its historical high of around $2,145 and started trading around $2158. Thursday saw another strong record for gold hitting a spot price of $2,161 per ounce.

Gold has done well in markets despite rising interest in AI and cryptocurrency propped up by a few factors such as the anticipated interest rate cuts, which markets are currently predicting will have a 60-70% of happening in June. Beyond the economic data, the biggest factor keeping gold buoyant is its reputation as a safe haven asset during political and economic uncertainties. Gold prices have held steadily above $2,000 per ounce since the end of 2023 due to political tensions in the Middle East and Ukraine. Central banks have also been buying an enormous amount of gold further fueling the spot price. When interest rates fall, gold prices will see another surge since bonds become less attractive, yielding less. With a strong start to March, gold has a bright future ahead and The Bank of America is predicting that gold will reach a spot price of $2,200 per ounce in December.

Silver historically rides gold’s tailwind and this week has not been different. With a surge in gold, silver went up by 4% within the week jumping from $22.00 to $24.40. The demand for silver is projected to go up 1% by the end of the year so the excitement for silver has not petered out yet. Platinum has also climbed 3% this week, sitting around $930 per ounce while palladium hit $1,070 per ounce.