[MARKET ANALYSIS] Precious metals maintain their shine amid geopolitical uncertainty

The rise in precious metals, particularly gold and silver, highlights their safe-haven status amid escalating geopolitical tensions.

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[MARKET ANALYSIS] Precious metals maintain their shine amid geopolitical uncertainty

UK S&P Global Manufacturing PMI Flash (Feb) 52.0 vs. Exp. 51.5 (Prev. 51.8, Low. 51, High. 52.5)

UK S&P Global Composite PMI Flash (Feb) 53.9 vs. Exp. 53.3 (Prev. 53.7, Low. 52.8, High. 53.9)

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  • In the precious metal space, spot gold was aided by the ongoing geopolitical tension, with the yellow metal crossing the USD 5,000/oz mark to the upside overnight. The dollar has waned from its best levels throughout the European session after finding resistance at Thursday's high, thus underpinning gold prices. XAU and XAG are trading at the upper range of USD 4,981.58-5,042.37/oz and USD 77.47-81.20/oz, respectively. Traders may be positioning for potential action from the US over the weekend amid the heavy US buildup and reinforcement in the region.
  • Copper prices are also firmer, tracking broader risk sentiment in the European session. Otherwise, a fresh macro catalyst has been lacking for the red metal, especially with the Chinese market on holiday. 3M LME copper trades at the upper range of USD 12.781-12.895k/t.
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The weakening USD has also supported higher prices, with traders closely monitoring potential US actions that could impact markets over the weekend. This environment of uncertainty typically boosts demand for metals, suggesting continued strength and volatility ahead.

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