The closing session in precious metals markets was marked by significant weakness in gold and silver, while platinum and palladium showed resilience and even gains. XAU ceded ground, closing at $4699.10 per ounce, registering a 2.37% drop, and silver (XAG) was not far behind, ending at $72.83 with a 4.28% decline. These movements occurred against a backdrop of persistent geopolitical tension and in anticipation of key macroeconomic data.
Industrial precious metals, on the other hand, showed divergent behavior. Platinum (XPT) managed a slight increase of 0.29%, closing at $1995.50, and palladium (XPD) continued its positive streak with a 1.53% rise to $1517.00. Copper (HG) closed the session with a marginal drop of 0.29% at $5.63.
Key Factors of the Closing Session
The escalating tensions surrounding Iran, fueled by President Trump's statements and active diplomacy between Russia and Iran concerning the Strait of Hormuz, continue to generate uncertainty in energy markets and, by extension, in precious metals. The news that Iran and Oman are drafting a protocol to 'monitor' traffic in the Strait of Hormuz, while suggesting an attempt at de-escalation, has not been enough to reverse the pressure on gold and silver, which behave more like safe-haven assets against inflationary risk and instability.
The anticipation of the March US employment report, due tomorrow, also influenced market dynamics. Projections point to job gains of 59,000 and an unemployment rate of 4.4%. Significantly better-than-expected data could strengthen the dollar and put downward pressure on metals, while a weaker outcome could have the opposite effect.
Statements from Federal Reserve members, although not introducing drastic changes to monetary policy, reinforce caution. The Fed maintains its data-dependent stance, and any indication of persistent inflation or a robust labor market could tip the scales towards a more prolonged tightening, which is generally unfavorable for non-interest-bearing precious metals.
In the corporate sphere, the news that Amazon will add a 3.5% fuel and logistics surcharge for sellers in the US and Canada due to the war in Iran underscores the conflict's direct impact on operating costs and inflation, a factor that historically favors precious metals as a hedge.
Closing Levels and Intraday Performance
* **Gold (XAU):** $4699.10 USD/oz (-2.37% in the session)
* **Silver (XAG):** $72.83 USD/oz (-4.28% in the session)
* **Platinum (XPT):** $1995.50 USD/oz (+0.29% in the session)
* **Palladium (XPD):** $1517.00 USD/oz (+1.53% in the session)
* **Copper (HG):** $5.63 USD/oz (-0.29% in the session)
The intraday session showed a predominant bearish trend for gold and silver from the opening of Western markets, intensifying in the final trading hours. Platinum and palladium, in contrast, experienced a recovery throughout the day, consolidating gains.
The main focus will be on the March US employment report. Robust data could intensify pressure on gold and silver. Likewise, any new developments on the geopolitical front will be closely watched, especially concerning the Strait of Hormuz and its repercussions on oil prices, which indirectly affect risk perception in metals markets. Statements from ECB members could also be relevant for metals' behavior.
Sources
The March jobs report will be released on Friday. Here's what to expect
Amazon to add 3.5% fuel and logistics surcharge for sellers as Iran war drives up energy prices
Trump's Iran war speech paints a grim picture for oil markets with more than 600 million barrels at risk
Iran and Oman drafting protocol to 'monitor' Hormuz Strait traffic