GOLD PRICES moved lower as the week unfolded, retreating from the strong surge that had previously pushed the metal past the US$5,300 level.
The earlier rally came amid the sudden emergence of geopolitical tensions, which led investors to increase exposure to traditional safe-haven assets.
At the height of the conflict’s outbreak, market participants shifted toward defensive positioning, driving a sharp rise in gold prices. However, sustaining that upward momentum proved challenging.
As the days progressed, gold prices gradually eased and traded mostly sideways, suggesting a cooling in safe-haven demand despite continuing geopolitical developments.
Notably, this muted movement occurred even as the conflict broadened in scope and persisted longer than initially expected — conditions that would typically lend additional support to safe-haven assets.
“Instead, the subdued price action suggests that much of the geopolitical risk had already been priced in during the earlier rally toward the USD5,300 level,” said MBSB Research.
Silver followed a similar pattern during the week. After an earlier rally that drove prices close to the US$93 level, the metal largely traded within a narrow range.
The initial surge mirrored gold’s movement as investors channelled funds into precious metals amid heightened geopolitical uncertainty.
When the conflict first erupted, silver attracted safe-haven inflows as market participants sought defensive assets to hedge against rising risks. This wave of buying briefly propelled prices to around US$93.
But the rally was short-lived. Prices soon softened and began fluctuating within a tighter band, reflecting a slowdown in safe-haven demand.
The subsequent sideways trend indicated that a significant portion of the geopolitical risk had already been incorporated into earlier price gains.
Meanwhile, industrial metal copper showed little momentum during the week.
“Copper prices remained largely subdued during the week, with price action reflecting muted sentiment and a lack of strong directional conviction,” said MBSB.
Although there were occasional intraday swings, copper struggled to stage a sustained recovery, signalling lingering concerns about near-term industrial demand. —Mar 17, 2026
Main image: Business Day
