THIS WEEK precious metals entered a stabilisation phase following the sharp volatility seen in late January. Price action during this window was more orderly, signalling that the market is reassessing direction rather than extending prior extremes.
“Gold remained the relative outperformer amongst the other precious metals as its price rose modestly higher through the period, recovering from the late-January pullback,” said MBSB.
The advance was gradual rather than explosive, suggesting a steady accumulation instead of speculative inflows.
This behaviour is consistent with investors maintaining defensive exposure amid lingering macro uncertainty, while waiting for clearer signals on interest rates and inflation. Importantly, gold held onto most of its earlier gains, reinforcing its role as a stability anchor.
“Silver continued to exhibit higher volatility and weaker conviction. Although prices attempted a rebound early during the month, follow-through was limited and gains proved uneven,” said MBSB.
Compared with gold, silver struggled to attract sustained buying interest, reflecting its dual role as both a ‘safe haven asset’ and industrial metal. The choppy movement indicates that investors remain cautious, with silver still digesting the sharp spike and correction seen in late January.
Copper traded in a largely range-bound manner during the week, mirroring the price behaviour seen since the start of the year. Unlike the other precious metals such as gold and silver, copper did not participate in the sharp swings or heightened volatility observed.
This steady, sideways movement suggests that copper largely avoided following the volatility of silver or gold, instead reflecting a market that remains anchored to underlying industrial demand expectations rather than short-term speculative flows.
“Unlike the precious metals markets, which experienced wild price swings during the start of the month, both crude oil and natural gas traded in a far more contained manner,” said MBSB.
This week energy prices remained largely range bound, reflecting a period of balance rather than heightened speculation. Crude oil fluctuated within a narrow band of USD67–69 per barrel, indicating steady sentiment and limited conviction in either direction.
Similarly, natural gas prices moved sideways between USD3.10 and USD3.60pMMBtu. Overall, energy markets during the week were characterised by stability rather than volatility.
Looking at the heightened volatility in precious metals prices, alongside signs of oversupply in crude oil, MBSB continues to favour the midstream segment of the energy value chain.
Their top pick is Dialog Group. Given the expectation of weakening crude oil prices in 2026, MBSB is retaining a Neutral position on the sector.
“We anticipate limited upside potential due to a forecasted surplus in crude oil, which will likely lead to lower trading prices affecting both upstream and downstream operations,” said MBSB. —Feb 16, 2025
Main image: Cryptorank
