HSBC-Precious Metals Daily Gold price dips；looks high, but tariff risks may provide support-20250714

Market focus, emerging trends

With the exception of platinum, all the precious metals surged in Asia and Londontrading. Tariff angst led prices higher by stimulating safe-haven buying. The marketsreacted to President Trump’s weekend announcement of a new raft of tariffs thatincluded 30% rates for Mexico and the EU. This followed a week of trade threats –including a 35% tariff against Canada. The announcement rattled the financialmarkets, triggering a fresh range of safe-haven gold purchases. European stocksslipped as investors reacted to the tariff news and gold rallied. This buoyed silver,which moved to near a 14-year high. Palladium also rallied, but platinum did not. Thismay have been due to spread trading with platinum and limited physical demand.

Gold continued to rally in US hours and was further buoyed by geopolitical events.President Trump announced a new weapons package for Ukraine and threatenedsanctions on buyers of Russian exports unless Russia agrees to peace talks onUkraine. The Council on Foreign Relations described this as a major policy shift.President Trump offered a 50-day period before the secondary sanctions take effect(Reuters). This served to push gold higher. Recent White House criticism of Fed ChairPowell continued to aide gold. Buying fell off later, as risks receded with a mild USDcomeback and comments by President Trump that he is open to trade negotiations.This weakened silver also, but the PGMs fell especially hard. The run up was done onvery light volume, and it took only mild selling to send these markets lower.