Following yesterday’s tariff announcements, silver, platinum, and palladium initially experienced an upward trajectory. However, these precious metals later succumbed to downward pressure, mirroring the performance of gold, according to Commerzbank commodity analyst Carsten Fritsch.
Gold/Silver ratio remains elevated, hovering just below 100
“Despite experiencing slightly smaller losses compared to gold, with the exception of palladium, the price action remains underwhelming. A de-escalation of the trade dispute should, in theory, have triggered price appreciation. The prior escalation of tariffs had demonstrably weighed on the prices of these three precious metals.” The analyst noted that broader market sentiment, influenced by macroeconomic factors and currency valuations, also played a role in the price fluctuations.
“This dynamic served as the primary rationale for the comparatively weaker price performance of silver, platinum, and palladium relative to gold in recent weeks. Silver and palladium continue to trade below levels seen in early April, while platinum is only trading at the same level. Gold, conversely, maintains a significantly higher trading price despite the recent pullback.” Market analysts are closely watching upcoming economic data releases, including inflation figures and employment reports, which could provide further insights into the trajectory of precious metal prices.
“The gold/silver ratio remains exceptionally high, positioned just under 100, and the price ratios of gold to platinum and palladium are also considerably elevated, standing well above 3:1. This suggests that a degree of skepticism persists regarding the prospect of a sustainable resolution to the ongoing tariff conflict. Investors are seemingly hedging against potential downside risks associated with trade uncertainties and their potential impact on global economic growth.” Furthermore, geopolitical tensions and central bank policies are contributing factors influencing investor sentiment in the precious metals market.
