February was a mixed month for precious metals markets, with gold near record highs while investor worries about US policy and global growth brought choppy trading. As markets wobbled, precious metals once again showed why they’ve been trusted for centuries when things get rocky.
Gold
Gold pricing saw strong momentum throughout February, starting at $2,820.73/oz and climbing to $2,948.17/oz by February 24th — gaining 4.5%. Prices backed off to $2,886.69/oz on February 27th, but stayed firmly in bullish territory.
What drove gold’s gains:
- Market jitters about Trump’s tariff talk had folks reaching for gold’s safety
- China kept stacking gold reserves, continuing their buying streak as they work to own less dollars
- Shaky US numbers cropped up in February, with J.P. Morgan pointing out that consumer confidence took its biggest dive since August 2021
Goldman Sachs bumped their gold target to $3,100/oz by year-end, noting the surprising appetite from central banks as countries rethink their reserves after Russia’s 2022 asset freeze.
According to Reuters, stock market troubles brought traditional gold buyers back into the fold. Tai Wong, a metals trader, saw gold’s jump as driven by “beleaguered investors seeking the ultimate safe-haven asset given Trump’s tumult on stock markets.” When markets get scary, gold buying often kicks into high gear.
The World Gold Council noted that “heightened geopolitical and geo-economic risk, higher inflation expectations, potentially lower rates and the uncertainty that markets are feeling” all helped fuel interest in gold as an asset class.
Silver
Silver stuck to a tighter trading range than gold in February. Opening at $31.64/oz, it topped out at $33.07/oz on February 20th before cooling to $31.56/oz by month-end.
The gold-to-silver ratio crept up throughout February, hitting 91.46 at the close — historically high and hinting that silver’s selling cheap compared to gold. For context, this ratio hung around the 60s through much of 2023, suggesting silver has room to run if old patterns hold up.
Silver got help from:
- Steady demand for solar panels
- Electronics makers
- EV batteries and parts
But headwinds blew in from factory slowdowns, especially in China, hurting silver’s industrial side. JP Morgan’s market report mentioned, “Concerns about the real estate market meant that GDP sensitive domestic equities lagged,” which tends to hit silver harder than gold since silver’s got one foot in industry.
Platinum and Palladium
February dealt different hands to the platinum group metals:
Platinum bounced between $965 and $1,005/oz throughout the month, landing at $965.10/oz at the close. Car companies need platinum for diesel engines, and hydrogen tech uses it too, but weaker auto sales hurt demand.
Platinum’s high point came February 13th, hitting $1,005.34/oz before losing steam in the back half of the month. Even with the pullback, platinum sits about 7.4% below where it started January, which might be a bargain for folks thinking long-term.
Palladium took a rougher ride, tumbling from $1,048.84/oz at February’s start to $952.27/oz by the finish—shedding roughly 9%. Gas-powered cars rely on palladium for emissions control, but electric vehicles don’t need it, raising concerns about its future.
Palladium’s worst day came between February 21st and 24th, when prices tumbled from $1,011.84/oz to $974.98/oz in just one day’s trading. By the 27th, palladium had slipped under the $1,000/oz mark that had previously held as a floor.
Mine troubles in South Africa and questions about Russian exports offered some price support, but couldn’t outweigh worries about falling demand.
Looking Forward
Coming weeks could bring big market movers:
- Fed watching will be intense — many market experts expect rate cuts this year, which usually gives metals a boost.
- Trump’s tariff plans will get clearer, possibly sending more folks to gold and silver if markets get jumpy.
- Hot spots in Ukraine and the Middle East still weigh on trader nerves.
- China’s central bank buying habits could keep a floor under prices.
As Goldman Sachs wrote in their metals report, “Several factors could cause the gold price to either undershoot or exceed our projection.” They believe the risks lean “to the upside — they are more likely to drive the price higher than forecast,” especially if uncertainty about policy sticks around.
Conclusion
February reminded us why tough times make people think about precious metals. Gold’s climb toward all-time highs shows it still works when markets get shaky, while silver looks ready for a catch-up rally. Platinum and palladium face a tougher road with the car industry’s big changes. With March already showing big moves in metal prices, expect more ups and downs — and chances to buy or sell — in the months ahead.
Spot price data based on CMI Gold & Silver’s spot price daily feed.
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