GOLD prices extended their upward momentum during the week, briefly surpassing the USD5,200 mark, reflecting a renewed bid for safety.
The move was primarily driven by the re-emergence of a “war premium”, as geopolitical risks intensified.
Heightened concerns surrounding the conflict in the Middle East contributed to elevated risk aversion, prompting investors to reassess exposure to risk-sensitive assets.
The intensification of hostilities reinforced the appeal of gold as a defensive hedge, particularly in an environment where geopolitical developments remain fluid and difficult to price with confidence.
In addition, lingering uncertainties related to previously imposed tariffs continued to weigh on market sentiment.
“On the other hand, silver outperformed its yellow counterpart in percentage terms during the week, recording an appreciation of approximately 10.8%, compared to gold’s 3.4% gain over the same period,” said MBSB Research.
The sharper upside moves highlights silver’s higher beta characteristics, with price action reflecting stronger short-term responsiveness to shifts in market sentiment.
The magnitude of silver’s advance suggests that speculative and momentum-driven positioning played a more prominent role relative to gold.
“While gold’s gains were anchored by defensive demand, silver benefited from a combination of risk reallocation and opportunistic buying, resulting in more pronounced price volatility,” said MBSB.
Copper prices remained largely subdued during the 23–27 Feb period, with price action reflecting muted sentiment and a lack of strong directional conviction.
Despite intermittent intraday fluctuations, copper struggled to establish a sustained rebound, indicating continued caution around near-term industrial demand. —Mar 3, 2025
Main image: EBC Financial Group
