Gold price hits record high as precious metals gain on tariff and recession concerns
Gold prices rose by 19% in Q1
Gold and other precious metals prices surged on the final trading day of Q1, driven by renewed safe-haven demand amid concerns over U.S. tariffs and economic uncertainty.
Gold soared 1.35% during the Asian and European sessions, reaching a fresh all-time high of $3,128 per ounce. This extends gold’s first-quarter gains to over 19%. The metal now trades near $3,120 in the North American session with its Relative Strength Index (RSI) in overbought territory, raising the likelihood of profit-taking.
The latest rally was triggered by U.S. President Donald Trump's confirmation that upcoming reciprocal tariffs will apply to all countries. Investor concerns over these trade measures, coupled with rising fears of a U.S. recession, spurred demand for safe-haven assets. Additionally, growing expectations that the Federal Reserve will resume rate cuts to counter a tariff-induced economic slowdown weighed on the U.S. dollar, further supporting gold and platinum prices.
Silver struggles below $34.5 as gold and platinum lead safe-haven inflows
Gold, Silver, Platinum price dynamics (March 2025). Source: MT4.
Platinum also benefited from the risk-off sentiment, rising 1.85% in the Asian session and breaking out of a six-day consolidation. However, its rally stalled at the psychological $1,000 resistance level during the European session. Platinum has since pulled back to $991.2 but remains up 0.8% on the day. A sustained move above $1,000 and a breakout past the five-month high of $1,010 would be necessary to confirm a bullish trend for Q2.
Silver followed a different trajectory, initially rallying in the Asian session before reversing course in the European session. The metal is now on a net daily loss in North American trading and risks a second consecutive day of decline. Silver remains below last week’s key resistance of $34.5, needing a breakout above $34.83 to reclaim levels last seen over a decade ago.
Looking ahead, gold's overbought RSI suggests a potential short-term retracement, while platinum and silver face key resistance levels that must be cleared to sustain upward momentum. The market’s focus now shifts to macroeconomic developments and central bank policy moves that could influence precious metals' direction in the coming quarter.
Gold hit a record $3,085 on Friday as investors turned to safe-haven assets amid inflation fears. Silver and platinum also rose as traders moved funds from stocks and crypto into precious metals.
