Precious Metals Market Recap: February 24 – February 28, 2025

The precious metals market experienced a broad decline over the past week, with gold, silver, platinum, and palladium all posting losses. A stronger U.S. dollar, investor profit-taking, and anticipation of key economic data contributed to downward pressure across the sector. Despite these short-term headwinds, long-term fundamentals remain supportive for several metals.

Gold

Gold prices trended lower throughout the week, starting at $2,952.56 per ounce on February 24 and closing at $2,851.19 per ounce on February 28 (USA Gold).

Key Drivers

  • Strengthening U.S. Dollar – A rising dollar made gold more expensive for international buyers, reducing demand (Reuters).
  • Investor Profit-Taking – Following a strong rally, some investors locked in gains, increasing selling pressure (Reuters).
  • Inflation Concerns – Uncertainty surrounding upcoming U.S. inflation data led to cautious trading (Reuters).

Outlook

Despite the recent dip, analysts remain bullish on gold’s long-term prospects. Goldman Sachs has raised its year-end price target to $3,100 per ounce, citing continued central bank demand (Kitco).

Silver

Silver followed gold’s downward trajectory, falling from $32.36 per ounce on February 24 to $31.02 per ounceon February 28 (USA Gold).

Key Drivers

  • Stronger U.S. Dollar – Similar to gold, silver saw reduced demand due to unfavorable exchange rates (Reuters).
  • Profit-Taking – Traders cashed in on previous gains, leading to increased selling (Reuters).
  • Inflation and Economic Uncertainty – Caution ahead of economic data releases contributed to volatility (Reuters).

Outlook

While silver has faced short-term declines, Citi Research has raised its 6- to 12-month price forecast to $40 per ounce, driven by expectations of a weaker labor market, potential Federal Reserve rate cuts, and renewed investor interest (Reuters).

Platinum & Palladium

Platinum and palladium also faced headwinds last week, with platinum dropping from $964.70 per ounce to $941.60 per ounce, while palladium declined from $949.80 per ounce to $905.75 per ounce(Investing.com, Investing.com).

Key Drivers

  • U.S. Dollar Strength – As with gold and silver, a stronger dollar negatively impacted demand (Reuters).
  • Profit-Taking – Investors offloaded positions after recent price increases (Reuters).
  • Automotive Sector Uncertainty – Palladium, heavily used in catalytic converters, faces headwinds as the market shifts toward electric vehicles (Reuters).

Outlook

Platinum remains well-positioned for potential upside, with price projections ranging from $850 to $1,220 per ounce, supported by industrial demand and potential supply constraints (Reuters). Palladium, on the other hand, faces a more uncertain future as EV adoption reduces its role in the auto industry. Analysts expect prices to fluctuate between $800 and $1,200 per ounce in the near term (Reuters).

Final Thoughts

The past week saw broad declines in precious metals, primarily due to currency fluctuations, investor positioning, and economic uncertainty. However, gold and silver continue to show strong long-term potential, while platinum could benefit from supply pressures. Palladium’s future remains more uncertain, with the evolving automotive landscape playing a key role in its trajectory.

Investors should keep an eye on upcoming inflation data, Federal Reserve policy decisions, and industrial demand trends, all of which could impact the next move in precious metals markets.