Gold hits monthly high, silver surges! Crypto and US stocks weaken, safe-haven funds flow back into precious metals

On February 28, precious metal prices continued to rise, with gold increasing by over 1% for the day. Since mid-February, the total gain has approached 8%, with intraday prices nearing $5,250, potentially marking the seventh consecutive month of gains. Amid rising geopolitical tensions between the U.S. and Iran, safe-haven demand has rekindled, driving gold prices higher. Earlier in late January, influenced by regional tensions, gold briefly hit a near-record high of nearly $5,600. It then retreated to around $4,400 in early February, a decline of over 21% from the peak.

Silver performed even more strongly, rising over 6% to around $94, with a total increase of more than 28% since mid-February, hitting a monthly high. Spot platinum rose 3.5% to $2,352 per ounce, while palladium edged up to $1,785, both on track for positive monthly returns. Market attention is focused on whether gold can continue its seven-month rally and how much room there is for silver prices to rebound.

In contrast, digital assets and stock markets experienced volatility and consolidation. Bitcoin, after falling below $60,000, has been fluctuating between $65,000 and $70,000, currently around $65,500, down 2.8% for the day. Diminished momentum in risk assets has made the divergence between gold and Bitcoin a key topic in capital allocation discussions.

U.S. equities also faced pressure. The S&P 500 declined 0.8%, and the Nasdaq fell 1.1%, with technology giants leading the decline. NVIDIA has dropped about 9% since Wednesday, despite earnings beating expectations, and has fallen below the $180 level. Meta, Amazon, and Alphabet also showed weakness amid rising concerns over capital expenditures related to artificial intelligence, which are expected to exceed $770 billion by 2026.

Under the dual influence of “geopolitical risks boosting gold prices” and “tech stock adjustments dragging down U.S. stocks,” short-term capital flows have favored defensive assets. Whether precious metals can maintain their strength will depend on changes in risk appetite and the evolution of global situations.