April 2025 was a wild ride for precious metals as markets reacted to growing trade battles between major economies. Gold smashed through $3,400 for the first time ever before pulling back, while silver, platinum, and palladium weathered the storm with varying degrees of success. Concerns about inflation and economic uncertainties largely drove this month’s price swings.
Gold
Gold built on its March hot streak in April, despite some sharp drops along the way. Starting at $3,114.99, gold went through several big swings before finishing at $3,302.89 on April 30th—a solid 6% gain for the month.
The path wasn’t smooth, with prices falling to $2,973.31 on April 7th before climbing to a record $3,427.65 on April 21st. Reuters reported that gold cut some losses on April 30th when weak U.S. economic numbers raised hopes for Fed rate cuts.
What pushed gold higher:
- U.S. economy shrank at a 0.3% rate in the first quarter
- The PCE price report showed no increase in March
- More trade brawls between the U.S. and China made markets nervous
- Central banks kept buying, especially in developing countries
Tai Wong, a metals trader quoted by Reuters, noted: “Gold remains confidently in a bull market, and today’s data suggests an easier path to initial Fed rate cuts, which should be positive for gold.”
Gold tends to perform well when interest rates drop and when people are concerned about political and financial issues. With both events occurring simultaneously, more investors are purchasing gold as a safe haven.
Silver
Silver bounced around more than gold in April, starting at $33.63 and ending at $32.70, down 2.8% for the month. The gold-to-silver ratio (how many ounces of silver equal one ounce of gold) jumped between 91.95 and 104.68 throughout April.
Silver faced pressure early on, dropping to $29.47 on April 4th before slowly climbing back. Factory demand continues to give silver a solid foundation.
A Silver Institute report released in April showed factory demand hit a record 680.5 million ounces in 2024, up 4% and the fourth straight year of record usage. The report pointed to growing demand from:
- Green energy projects
- Power grid upgrades
- Electric vehicles
- Solar panels
- Computer chips for AI systems
The world used more silver than it produced for the fourth consecutive year, resulting in a shortage of 148.9 million ounces in 2024. Over the past four years (2021-2024), the total shortage reached 678 million ounces, equal to 10 months of what mines produce worldwide.
The Silver Institute predicts that while overall demand may dip slightly in 2025, a shortage of approximately 117.6 million ounces is still expected.
Platinum and Palladium
Platinum and palladium held up relatively well in April despite concerns in the car industry tied to potential tariffs.
While platinum started April at $996.40 and ended at $978.73, down just 1.8%, it bottomed at $924.88 on April 7th before recovering. Palladium began at $1,023.00 and closed at $975.47, dropping 4.6%.
A Reuters story from February warned that Trump’s planned auto tariffs could hurt platinum metals demand. Cars and trucks use about 40% of all platinum and 80% of all palladium worldwide.
Zain Vawda from MarketPulse by OANDA predicted platinum demand could fall 1% (roughly 102,000 ounces) this year and palladium by 4% (364,000 ounces) if U.S. car import tariffs kick in.
Even with these worries, platinum prices stayed fairly strong because mines aren’t producing enough. Both metals also got help from:
- Uses in other industries besides cars
- Stricter pollution rules globally
- Supply worries, especially from Russia and South Africa
- Some investors buying them instead of pricier gold
What’s Next
For May, watch these market movers:
What the Fed does about interest rates after the shrinking GDP report—next decision May 7, 2025
- Any new developments in the U.S.-China trade spat
- Friday’s jobs report, which could change rate cut expectations
- How much gold and silver Chinese buyers want after their May 1-5 holiday
Gold’s first four months of 2025 have surpassed what most experts predicted for the entire year. While prices may cool off a bit, the fundamental reasons for owning precious metals remain unchanged.
Silver’s weaker showing compared to gold might be an opportunity for buyers who see value in its combination of industrial use and investment appeal.
Platinum and palladium face challenges from their heavy connection to the auto industry, but limited supply could help prices if trade tensions ease up.
Conclusion
April 2025 added another chapter to what’s becoming a standout year for precious metals, led by gold’s record run. With shaky economics, inflation worries, and global tensions, metals continue to attract both new and seasoned investors.
If you’re thinking about adding to your metals holdings or making your first purchase, today’s market offers options across the board. With gold setting records and silver offering relative value at current price ratios, there’s something for different investing goals.
Spot price data based on CMI Gold & Silver’s daily spot price feed.
Stay up to date! Sign up to receive daily spot prices and more precious metals market news delivered to your email.
You Might Also Like:
