Gold, silver, platinum test support levels as Trump reviews tariff strategy
Gold and silver rally may not be sustainable
Gold, silver, and platinum prices have experienced notable pullbacks following recent highs, with investors assessing technical levels and fresh tariff headlines from the U.S. government. While metals remain elevated in bullish territory on the daily RSI, their recent price corrections raise questions about the sustainability of their rallies.
Gold hit an all-time high of $3,057 before retreating 1.8% over two consecutive sessions, finding support at the key $3,000 level. After stabilizing at this pivot, gold attempted a mild recovery during the European session, now trading near $3,020. Silver, which recently surged to a five-month high of $34.23, has seen a sharper 4.5% decline over three consecutive sessions, bottoming at $32.65. A modest rebound in the Asian session lifted silver to $33.20, but the broader trend remains in focus. Platinum followed a similar pattern, reaching $1,010 before shedding 3.3%, retreating to the $975 support zone. While the level has so far cushioned further declines, platinum remains under pressure after a 0.7% dip earlier in the Asian session.
Platinum price dynamics (Feb - March 2025). Source: TradingView
Tariff uncertainty and overbought RSI weigh on gold, silver, and platinum
The pullbacks in precious metals align with reports that the Trump administration may scale back the planned tariffs set to take effect on April 2. Rather than imposing broad tariffs, the U.S. government is said to be considering more targeted measures by sector and region. Although this approach eases some market uncertainty, the overarching objective of reshoring production to the U.S. remains unchanged. Analysts believe that much higher tariffs, potentially over 100%, along with government subsidies, would be required to bring about a significant shift in supply chains.
Despite the recent downturn, daily RSI readings for gold, silver, and platinum remain elevated, indicating that bullish momentum is intact. However, given the strong retracements, traders are closely watching key support levels for signs of further declines or a renewed push higher. The $3,000 mark for gold, $32.65 for silver, and $975 for platinum remain pivotal in determining the next leg of price action.
The Fed's dovish stance failed to lift precious metals, as the stronger dollar kept prices under pressure. Gold, silver, and platinum extended losses, struggling to break key resistance levels.
