March 2025 was a record-setting month for precious metals, with gold breaking $3,000 for the first time before falling back as trade war talk heated up. Big price swings hit all metals as markets tried to figure out what’s next in this uncertain economy.
Gold
Gold had a strong run in March, pushing well past the $3,000 mark that many thought would take years to reach. Starting at February’s close of $2,886.69/oz, gold climbed steadily to hit $3,155 by March 31, according to Investopedia.
Gold jumped 20% in the first quarter — its best quarter since 1986. But April brought a reality check, with prices dropping to $3,019.20 as markets suffered from trade war worries.
What drove gold higher:
- Trump’s talk about tariffs made markets nervous
- China fired back with 34% tariffs of their own
- Central banks kept buying gold, especially in emerging markets
- Stock market jitters pushed investors to look for safer options
Bank of America sees gold going to $3,500, citing strong demand from big institutions and central banks. However, after the recent drop, the road ahead could be bumpy.
Silver
Silver didn’t keep up with gold during March. From $31.56/oz at the end of February, silver fell to $29.55/oz by early April, based on Metals Daily.
This pushed the gold-to-silver ratio to 100:1, says Ross Norman of Metals Daily. That’s the highest in 5 years, getting close to the all-time high of 113:1. For comparison, the ratio was 91:1 in February and averaged around 60:1 through most of 2023.
Silver had a tough month for several reasons:
- Factory slowdowns raised worries about industrial use
- All eyes were on gold during market uncertainty
- Profit-taking hit prices after earlier gains
- Even tight physical supplies couldn’t push prices higher
Norman points out silver’s strengths though, noting “five consecutive years of supply deficits, a tight market with lease rates nudging 6% and significant flows out to NY.” Silver often follows gold’s lead eventually, serving both industrial and investment markets.
Platinum and Palladium
Platinum group metals dropped in March as car sales concerns continued.
Platinum fell from $965.10/oz to $933.60/oz by early April. The supply picture remains tight, though. The World Platinum Investment Council told Nasdaq that platinum should stay in deficit next year too, with demand topping supply by about 848,000 ounces.
Edward Sterck from WPIC said platinum has been trading in a tighter range between $900 and $1,100 over the past year, suggesting a breakout might be coming. Investor buying might fall 14% in 2025 compared to 2024, but it would still be higher than historical norms.
Palladium dropped to $948.50/oz, far from its peak of $3,017/oz in May 2021. According to UBS, as reported by investing.com, palladium faces headwinds and possible challenges from:
- More car makers going electric instead of gas engines
- Too much supply depending on Russia and South Africa (80%)
- Less investor interest than gold gets
But tougher emissions rules and possible Russian supply problems keep the outlook from being totally negative.
Looking Ahead
April starts with markets trying to digest Trump’s “Liberation Day” tariffs and China’s response. So far the reaction has been negative across most assets.
Key things to watch:
- Will central banks keep stocking up on gold, especially China?
- How will the Fed handle inflation that could come from tariffs?
- Can physical demand for gold in Asia stay strong?
- Will silver narrow the gap with gold from these extreme levels?
Goldman Sachs still predicts gold hitting $3,100 by year-end; however, there are plenty of unknowns as we head into a more volatile market led by trade and tariff escalation.
Conclusion
March 2025 saw gold finally break $3,000, something many thought would take much longer. The pullback since then reminds us that markets always have ups and downs. The basics supporting precious metals remain solid: economic uncertainty, central bank buying, and folks looking for safe places to put their money.
If you’re thinking about buying some precious metals, the current volatility might give you good chances to buy, especially silver and platinum where prices look relatively cheap. Having a mix of gold and other metals helps handle the market swings.
Spot price data based on CMI Gold & Silver’s daily spot price feed.
Stay up to date! Sign up to receive daily spot prices delivered to your email.
