Markets Rebound — But Will It Last?

by | Feb 3, 2025

Howdy folks,

If you’ve been watching gold, you might have noticed something big today — it hit a new all-time high!

Or… did it?

Right now, if you’re looking at gold futures, the numbers might look a little off. That’s because gold is rolling over from the February contract to the April contract — and that shift is making today’s breakout look different depending on which contract you’re watching.

What’s Happening With Gold?

As I’m writing this, gold futures are up over $50 on the day, with the April contract trading around $2,850. Meanwhile, the outgoing February contract is sitting about $20 lower.

That difference is simply because futures contracts roll over — meaning traders are shifting from the front-month contract (February) to the next one (April).

And since futures contracts don’t always trade at the exact same price, that shift can create a gap between the old and new contracts.

How Futures Rollovers Work

Here’s what’s happening under the hood:

  • Gold futures contracts expire every two months (February, April, June, etc.).
  • As expiration approaches, traders move their positions from the expiring contract to the next one.
  • Sometimes, the next contract trades at a premium or discount to the current one — causing price differences.

So if today’s price action in gold looks weird on your screen, you’re not crazy — it’s just the rollover.

The Bigger Picture

Regardless of the contract differences, one thing is clear — gold is on the move. With the Fed ‘s rate cut campaign on pause, the dollar down, and inflation still sticky, gold’s breakout today could be the start of a much bigger run.

I’ll be watching to see if gold can hold these new highs and whether silver and copper continue to follow suit.

I covered all this and more on my FREE Market Radar livestream today. We didn’t just talk gold — we also dug into:

  • Crude oil’s next move after recent supply disruptions and OPEC’s shifting stance
  • Why the Nasdaq is outpacing the rest of the market and what that tells us about tech stocks
  • How the Fed’s latest moves could send shockwaves through commodities and the dollar
  • The latest buzz in nuclear energy and what it means for uranium stocks

If you missed it, don’t worry — you can catch the full replay right here!

Let me know what you think, and I’ll see you back here soon.

Stay sharp out there,
—Geof Smith

P.S. If you want to see how I target consistent monthly income with one simple monthly trade, click here now to check out my 2025 Monthly Income Gameplan!

What to read next