Precious Metals Prices

Precious metal prices increased 6.8% month on month in March, following February’s 0.8% fall.

In March, precious metal prices rose from February’s average at the fastest pace among all four commodity groups, with gold, silver, palladium and platinum prices all increasing. A weaker U.S. dollar and mounting geopolitical tensions in the Middle East were likely behind the rise. Looking at individual metals, gold prices hit an all-time high of over USD 2,200 per ounce in March, boosted by strong central bank purchases. Meanwhile, rebounding global vehicle demand and stronger-than-expected Chinese economic data likely added momentum to palladium, platinum and silver prices. That said, higher average U.S. treasury bill yields in March capped the overall upturn in prices by increasing the opportunity cost of holding precious metals.