With a weekly close of around $2010 for gold, the gold trend this week had its ups and downs with it testing both $2065 and $2000 this week. Gold still hasn’t recovered fully from its price drop last week due to Federal Reserve comments about the rate cuts, dashing investors' hopes of an early rate cut in March. On Tuesday, Gold was trading at a slightly higher price that came from a combination of declining US treasury yields and a weaker US dollar. The movement comes from investors waiting on decisions from the decline in the US dollar index, which enhanced the appeal of gold. On Wednesday, there was an uptrend in gold prices. Although there was a slight uptick during the middle of the week, gold did not finish strong as gold hit the lowest prices of the week on Friday.

In the short term, gold’s price has been relatively stable, forming a pattern of waiting for Federal Reserve announcements and then moving accordingly. There is an expectation for the rate cuts to be announced in May instead of the previously anticipated March. However, to determine gold’s true future trajectory, we need to take a look at the 50-day average. Although gold prices dipped Thursday and Friday, it’s still above its last 3 price declines which hit $1823 in October, $1989 in November and 2007 earlier this month. There still seems to be continued momentum for gold’s upward trajectory, just not as aggressively bullish as it was in December.

Even though gold still has momentum behind it, silver is not following in gold’s footsteps. The spot price of silver has been on a downward trajectory and the gold-silver price ratio has widened significantly. The gold to silver ratio was 1:89 before this week, and rose to over 1:90 this week. Economic uncertainty with the addition of low demand for industrial silver is anchoring silver prices down from where they could reach.