[MARKET ANALYSIS] Precious metals see haven appeal despite a firmer USD

Spot gold rallied on a haven bid amid the weekend geopolitics (Newsquawk analysis available on the feed) but then mildly pulled back after stalling just shy of the USD 5,400/oz level in APAC trade, before mounting the level to a USD 5,419.15/oz peak. Spot silver hit a USD 92.42/oz peak from a USD 92.02/oz trough.
ING argues that the escalation reinforces gold’s safe-haven appeal. The renewed geopolitical risk premium comes at a time when investor positioning was already constructive and central bank buying remains strong.
Copper futures ultimately weakened overnight but trade flat in European hours, in choppy trade amid the mostly negative risk appetite in the region, with all focus on geopolitics. 3M LME copper resides in a narrow USD 13,249.60-13,444/t range at the time of writing.
Desks suggest if energy disruptions persist and risk appetite deteriorates, cyclical metals could face pressure from growth concerns and USD strength. Conversely, should tensions remain contained and the oil risk premium fade, copper could stabilise alongside broader risk assets.