Gold, silver and platinum rise as market reacts to recession and tariff announcement
In times of uncertainty, demand for safe haven assets increases
Precious metals are gaining attention today as market sentiment remains unsettled, driven by rising concerns over potential U.S. tariffs and broader economic outlook. With U.S. equity markets showing mixed signals, the spotlight is on gold, silver, and platinum as safe-haven assets during this period of uncertainty.
Gold, as the traditional safe haven, has benefited from the tariff concerns surrounding U.S. President Donald Trump’s announcement. On April 1, gold hit an all-time high of $3,150 but retraced slightly by 1.5% to $3,100. Today, gold has shown resilience, trading near $3,125 in the European session. The market is anticipating a potential increase in tariffs, with speculation suggesting that they could reach up to 20%, adding pressure on global growth expectations. This growing uncertainty may continue to strengthen the demand for gold as a store of value.
Gold, silver, platinum price dynamics (March - April 2025). Source: MT4.
Silver and platinum show signs of recovery amid upcoming tariff announcement
Silver price, after reaching a five-month high of $34.58, encountered a downward pullback that led to a five-day low near $33.50. The metal found support at the 100 EMA on the 4-hour chart, but remains on a downtrend. As of the European session today, silver is trading near $33.70, showing a modest recovery. However, concerns about economic slowdown and possible tariff increases are likely to weigh on silver’s price action, as it typically follows the broader market sentiment more closely than gold.
Platinum has also faced a similar struggle, experiencing a second consecutive day of decline. Earlier this week, it reversed from the $1,000 psychological resistance level, and today, the metal has dipped 1.3% to a four-day low of $973. Platinum is now encountering resistance at the 100 EMA, which lies just above the current price at $983. Platinum’s performance remains more volatile compared to gold, as it is more closely tied to industrial demand, which could be negatively impacted by global recession fears.
The latest data reveals a bleak economic picture, with recession fears intensifying. This, combined with the potential for higher tariffs and the prospect of further Federal Reserve interest rate cuts, can result in increased demand for precious metals. While gold remains the primary beneficiary of economic uncertainty, silver and platinum are also influenced by broader market conditions. As the U.S. prepares for potential tariff hikes and the global economy faces growing challenges, the precious metals market may continue to see upward pressure as investors seek refuge from a volatile economic landscape.
Gold outpaced silver and platinum as U.S. trade policy uncertainty fueled a record-breaking rally to $3,150. Technical indicators showed strong bullish momentum, supporting gold's price surge.
