Precious Metals Market Recap: March 3 – March 7, 2025

The precious metals market saw a mix of stability and slight gains this past week, with gold, silver, platinum, and palladium reacting to shifting economic conditions. A stronger-than-expected U.S. labor market report, concerns over trade policies, and ongoing industrial demand played key roles in market movements.

Gold

Gold prices ended the week at $2,911.00 per ounce, up 1.7% from the previous week (Reuters).

Key Drivers

• Economic Uncertainty – Market concerns over U.S. President Donald Trump’s proposed tariffs led to increased safe-haven demand for gold.

• Stronger U.S. Jobs Report – Despite gold’s gains, the release of robust non-farm payroll data added some pressure, tempering further price increases.

• Geopolitical Risks – Rising tensions in the Middle East and concerns over global trade policies contributed to gold’s appeal as a hedge against volatility.

Outlook

Gold remains well-supported by global economic uncertainty and central bank buying. Analysts continue to project upside potential, with targets exceeding $3,000 per ounce if geopolitical risks escalate further.

Silver

Silver saw a marginal 0.1% decline, closing the week at $32.58 per ounce (Reuters).

Key Drivers

• Industrial Demand vs. Investment Caution – While silver remains in high demand for solar panels and industrial applications, investment demand lagged due to broader economic uncertainty.

• Gold-Silver Ratio Expansion – Silver underperformed gold, pushing the gold-to-silver ratio higher, reflecting investor preference for gold as a primary hedge.

Outlook

Despite the minor pullback, silver’s long-term outlook remains positive, with analysts pointing to continued demand from the renewable energy sector and potential Federal Reserve rate cuts as bullish factors.

Platinum

Platinum gained 0.2%, settling at $968.78 per ounce (WSJ).

Key Drivers

• Supply Deficits – The platinum market is heading for its third consecutive annual deficit, with a projected shortfall of 848,000 ounces due to low recycling rates and constrained mining production in South Africa and North America.

• Automotive Demand – Despite EV adoption, platinum demand in hybrid vehicles and hydrogen fuel cell technology continues to support prices.

Outlook

With ongoing supply challenges and growing industrial applications, platinum remains well-positioned for further price increases, with analysts forecasting potential highs above $1,200 per ounce in 2025.

Palladium

Palladium closed the week 0.1% higher at $943.67 per ounce (Reuters).

Key Drivers

• Auto Industry Shift – Palladium continues to face uncertainty as the global automotive industry moves toward electric vehicles, reducing its traditional use in catalytic converters.

• Stable Supply – Unlike platinum, palladium’s supply remains relatively steady, limiting major price spikes.

Outlook

While palladium remains under pressure from long-term structural shifts in the auto industry, it could still see short-term price rebounds based on supply chain disruptions and intermittent demand spikes.

Final Thoughts

Precious metals had a relatively stable week, with gold and platinum gaining ground, while silver and palladium saw minimal changes. Ongoing trade policy uncertainties, central bank decisions, and industrial demand trends remain key factors shaping the market in the coming weeks. Investors should watch for further inflation data and geopolitical developments as potential price catalysts.