Precious Metals Daily_Gold up on soft data; can hold as tariff issue supportive

Summary of Precious Metals Daily Commodities Report Industry Overview - The report focuses on the precious metals market, specifically gold, silver, platinum, and palladium prices and trends as of March 25, 2025 [1][5]. Key Points and Arguments 1. Gold Price Trends: - Gold prices remained above USD 3,000/oz, with a PM fix at USD 3,025.20/oz. The market showed tight trading ranges, with resistance around USD 3,020/oz [3][1]. - A drop in consumer confidence, reported by the Conference Board, fell by 7.2 percentage points in March, contributing to a boost in gold prices [3][6]. 2. Market Influences: - The USD was mostly flat, which did not significantly impact gold prices until a later weakening of the dollar helped push prices slightly higher [3][6]. - Higher yields capped gold prices, indicating a complex relationship between interest rates and gold demand [3][6]. 3. ETF Inflows: - Significant gains were noted in ETFs, suggesting strong investor interest in gold despite underlying sluggish physical demand [3][9]. 4. Silver Performance: - Silver outperformed gold, attributed to ETF inflows, but there are concerns that it may quickly decline if gold's rally eases [3][10]. 5. Platinum and Palladium: - Platinum and palladium prices showed some upward movement, but uncertainty regarding potential US auto tariffs may limit further gains [3][10]. 6. Federal Reserve Commentary: - Mixed comments from Federal Reserve officials indicated a cautious approach to interest rate cuts, with some suggesting only one cut this year instead of two. This stance may be gold-negative but could be tempered by inflation concerns [3][8]. 7. Economic Data Sensitivity: - Gold has been particularly sensitive to deteriorating economic data, with upcoming releases for durable goods orders and Q4 GDP expected to influence market sentiment [3][9]. 8. Producer Selling: - Increased selling by producers has been noted, which may impact future price movements as they step forward to sell forward [3][9]. Additional Important Content - The report emphasizes that while gold may remain supported by weak economic data, significant price movements may not occur until there is more clarity on tariff issues [3][9]. - The underlying demand for physical gold remains sluggish at high prices, but investor interest persists, particularly in ETFs [3][9]. - The report suggests that the current rally in silver is largely inspired by gold, and its sustainability is questionable given the sluggish industrial demand outside specific sectors [3][10].