Gold Gains 1%; Boeing Shares Rise Following Q4 Results

Gold prices continued their upward trajectory on Tuesday, climbing 1% to reach new record highs. The precious metal has been on a tear this year, up over 25% year to date, and shows no signs of slowing down. Meanwhile, Boeing shares rose following the release of the company's Q4 results, which, while disappointing, were not as bad as expected.



Gold's recent rally can be attributed to several factors, including central bank purchases, particularly by emerging market central banks, which have tripled since Russia's invasion of Ukraine in 2022. This increased demand has been driven by concerns about US financial sanctions and the growing US sovereign debt burden. Additionally, the Federal Reserve's rate cuts have brought Western investors back into the gold market, as seen in the sharp rally over the past two years. Gold also offers significant value as a portfolio hedge against potential geopolitical shocks, including tariffs, Fed subordination risk, and debt sustainability fears.



Boeing's Q4 results, released on January 29, 2025, showed a significant loss of $3.8 billion, primarily due to the ongoing machinists strike and other issues. However, the company's stock price nudged up less than 1% before the opening bell, indicating a mixed reaction from investors. The company's loss per share of $5.46 was well above the $3.08 loss that Wall Street analysts expected, according to FactSet. Despite the disappointing results, Boeing's shares rose, likely due to the company's efforts to address its challenges and improve its operations.



Boeing's struggles have had a ripple effect on the broader aerospace industry, impacting competitors, suppliers, and market sentiment. However, the industry remains resilient, with strong demand for new aircraft and ongoing innovation in technology and sustainability. This has allowed other companies in the sector to maintain their growth and attract investor interest.

In conclusion, gold prices continue to climb, driven by central bank purchases, rate cuts, and geopolitical risks. Meanwhile, Boeing's Q4 results, while disappointing, were not as bad as expected, leading to a modest rise in the company's stock price. The broader aerospace industry remains resilient, with strong demand for new aircraft and ongoing innovation. As always, investors should stay informed and make decisions based on their individual financial goals and risk tolerance.