Gold, Bitcoin Hit New All-Time Highs on Friday
Gold futures hit a fresh new all-time high price and closed the week convincingly stronger on Friday. During the same session, Bitcoin also hit a new all-time high and traded above $70,000 for the first time in history. Both assets continue to thrive as the US and global economic data come in mixed, portraying what is still an unsettled global economy.
On Friday, the February US non-farms payroll data came in weaker than expected with an elevated unemployment rate of 3.9%, higher than the 3.7% reading from January. The US Dollar Index also hit a five-week low as the unemployment data weighed on the index. The lower price of the greenback has helped gold surge higher in recent weeks.
Eurozone economic data also showed that fourth-quarter GDP was accurate and did not need to be revised. The region showed a 0.1% year-over-year GDP growth. As a result, both the European Central Bank and the Bank of England held their interest rates as did the US Federal Reserve and the Bank of Canada this week.
Although Gold sits at a historic all-time high price, silver futures are trading at nine-week highs and are poised to extend to the $26.00 level in the coming weeks. On a technical basis, Silver will see some resistance at $25.00 and then $26.00, although it could see a temporary pull-back based on how hot it has been trading. The key level of support for Silver remains at $23.50.
For the week, Gold COMEX April 2024 futures contracts settled at $2,186.20 after hitting an all-time high price of $2,203.00 during midweek trading. Silver COMEX May 2024 futures contracts settled the week at $24.525.
Precious Metals Stocks and ETFs Weekly Performance
As can be expected with the strong performance of gold futures, gold mining stocks performed well this week. The MIGL Gold Miner’s Index rose by about 8.4% to close the week although most components ended the session red as the broader markets pulled back on weakness in semiconductors and energy. As of the closing bell, only seven components of the MIGL index were trading higher. Agnico-Eagle Mines (AEM), Osisko Gold Royalties (OR), and Equinox Gold Corp (EQX) led the way for the gainers, while Barrick Gold Corp (GOLD), Alamos Gold Inc (AGI), and Gold Field Ltd ADR (GFI) paced the declining stocks.
The Van Eck Gold Miners ETF (GDX) built on its strong performance last week, adding a further 6.6% this week. Likewise, the Van Eck Junior Gold Miners ETF (GDJX) gained 6.4%. Both ETFs are now clawing their way back to even for the year after an ugly first couple of months. The SPDR Gold Trust (GLD) broke through a long-time resistance level on the weekly chart as seen below.
This could be the start of a textbook cup and handle formation as gold enters price discovery mode seeking out new all-time highs.
Silver miners also fell on Friday alongside the broader markets. The MISI Silver Miners Index posted a reversal during the final session of the week as seven of the ten components were even or below water. The iShares Silver Trust ETF (SLV) added 3.7% for the week and has now posted a modest 2.7% return year-to-date.
What’s in Store Next Week for Precious Metals?
Next week brings the February CPI, Core CPI, PPI, and Core PPI reports midweek. These haven’t really been market-moving events as of late but many will be watching to see if January’s hot CPI number was an anomaly or a trend.
Some major precious metals companies reporting earnings next week include Endeavour Silver Corporation, Silvercrest Metals, Wheaton Precious Metals, and the US Gold Corp.