Precious Metals Market Update: 4/1/2026

Precious metals posted a mixed but broadly positive session on Wednesday as the March ISM Manufacturing report revealed surging input costs, reinforcing inflationary pressures tied to the ongoing Iran-Hormuz conflict. Gold advanced +1.91% to $4,769.81, extending its rally to a third consecutive session. Silver edged up +0.20% to $75.81, while platinum gained +0.45% to $1,977.00. Palladium was the lone decliner, slipping -0.10% to $1,500.75.

The ISM Manufacturing PMI for March registered 52.7, up from 52.4 in February, marking a third consecutive month of expansion. The prices-paid component surged 7.8 percentage points to 78.3 -- its highest reading since June 2022 -- driven by rising steel, aluminum, and petroleum-based product costs. Supplier deliveries slowed to 58.9, their highest in nearly four years, signaling mounting supply-chain stress. These inflationary signals supported gold bars and other precious metals as hedges against persistent price pressures.

The session opened on a note of residual optimism from Tuesday's rally, when a Wall Street Journal report indicated that President Trump was willing to end the Iran conflict without securing the Strait of Hormuz. Oil markets reversed course, with the Brent June contract pulling back to approximately $103.90 per barrel after the May contract had closed near $118.35 on Tuesday. Iranian drones struck fuel storage tanks at Kuwait International Airport early Wednesday, briefly supporting crude before the broader risk-on sentiment reasserted itself. Equities extended gains at the start of the second quarter amid optimism over a conflict exit.

The 10-year Treasury yield held near 4.32% on Wednesday, stable after declining from 4.35% on Monday. The bond market continues to weigh inflation risk, evidenced by the ISM data, against recession fears tied to the Hormuz disruption. The U.S. Dollar Index remained under pressure amid persistent geopolitical uncertainty. President Trump's April 6 deadline for Iran to reopen the Strait of Hormuz or face strikes on energy infrastructure remains the dominant near-term catalyst for all risk assets, including silver coins and platinum. Employment within the ISM report remained in contraction at 48.7, marking 30 consecutive months of manufacturing job losses, while new export orders tipped into contraction at 49.9. Thirteen of 18 manufacturing sectors reported expansion in March, and precious metals were specifically listed among commodities reporting higher prices.

Spot Precious Metals Prices

Key Drivers

ISM Manufacturing Prices-Paid Surges to 78.3

The March ISM prices-paid component surged 7.8 points to 78.3, its highest since June 2022, driven by rising steel, aluminum, and petroleum costs. Supplier deliveries slowed to 58.9, signaling intensifying supply-chain bottlenecks.

Iran Drones Strike Kuwait Airport, Oil Pulls Back

Iranian drones struck fuel storage tanks at Kuwait International Airport early Wednesday. Brent crude for June delivery pulled back to approximately $103.90 per barrel after the May contract closed near $118.35 on Tuesday, reflecting continued optimism surrounding a potential U.S. exit from the conflict.

Equities Extend Rally on War-Exit Optimism

U.S. equities opened higher to begin the second quarter, extending Tuesday's sharp rally on the Wall Street Journal report that Trump is willing to end the Iran conflict without securing the Strait of Hormuz.

Looking Ahead

April 6 Iran Energy Deadline

President Trump's deadline for Iran to reopen the Strait of Hormuz or face strikes on energy infrastructure is now five days away. Diplomatic developments and any shifts in the administration's posture remain the dominant catalyst for oil, equities, and precious metals. The deadline has been extended once already, from its original timeline.

Nonfarm Payrolls and Good Friday

The March nonfarm payrolls report is scheduled for Friday morning. Markets close early for Good Friday, compressing the reaction window for any labor market surprises. Payrolls data will provide the first comprehensive look at March hiring trends amid the Iran conflict and associated economic disruption.

Fed Policy and Inflation Trajectory

The ISM prices-paid surge to 78.3 reinforces the view that the Federal Reserve is unlikely to deliver rate relief in the near term. Fed Chair Powell's recent "wait and see" posture, combined with rising consumer inflation expectations that reached a seven-month high, keeps the inflationary backdrop firmly in focus for precious metals markets.

Disclaimer: This market update is for informational purposes only and does not constitute financial, investment, or trading advice. Precious metals investing involves risk, and past performance is not indicative of future results. Always conduct your own research or consult a qualified financial advisor before making investment decisions. Prices shown are sourced from texmetals.com and are subject to change.