Precious Metals Daily_New gold highs on tariff risk; can go higher near term

Summary of Precious Metals Daily Commodities Report Industry Overview - The report focuses on the precious metals market, specifically gold, silver, platinum, and palladium, highlighting recent price movements and market dynamics [1][2][3]. Key Points Gold Market Insights - Gold prices reached a new high of USD 2,882/oz, driven by geopolitical tensions and trade issues, alongside a weaker USD and lower yields [6][5]. - The World Gold Council reported record demand for gold in Q4 2024, with total demand rising by 1% year-on-year to 4,974 tons, supported by significant central bank purchases exceeding 1,000 tons [8][5]. - Central bank demand in Q4 2024 was approximately 333 tons, indicating strong institutional interest [8][5]. - Gold ETFs showed stabilization after three years of outflows, suggesting renewed investor confidence [8][5]. - The report anticipates that geopolitical and trade risks will continue to support gold prices, although potential breakthroughs in trade could lead to price declines [9][5]. Silver Market Dynamics - Silver prices lagged behind gold, with underlying demand from both industry and coin purchases considered weak [10][5]. - The report suggests that silver prices could decline if gold's rally moderates, indicating a close correlation between the two metals [10][5]. Platinum and Palladium Trends - Platinum prices showed some strength, while palladium remained sluggish, affected by concerns over auto demand and potential tariff impacts [10][5]. - The report notes a mixed outlook for platinum group metals (PGMs), with a shift away from electric vehicles potentially providing some support [10][5]. Economic Indicators - The US ADP jobs report indicated an addition of 183,000 jobs in January, while the ISM services index eased to 52.8 from 54.0 in December, reflecting a mixed economic outlook [4][5]. - Richmond Fed President Tom Barkin expressed expectations for a significant decrease in annual inflation rates in Q1, suggesting no strong case for a rate hike [7][5]. Additional Insights - The report emphasizes the impact of tariff risks on the USD, which could further influence gold prices [6][5]. - The overall sentiment in the precious metals market remains cautious but optimistic, with a focus on geopolitical developments and their potential effects on investor behavior [9][5].