Gold and Silver Slightly Down, Fed Outlook a Key Factor
Gold prices weakened slightly on Monday (February 16th), while silver also retreated, as the market continued to re-assess the direction of US interest rates following the release of the latest inflation data.
At 4:25 a.m. Eastern Time (09:25 GMT), spot gold fell 0.6% to $5,015.40/oz, while April gold futures fell 0.2% to $5,035.25/oz. Spot silver fell 0.9% to $77.230/oz, while platinum fell 1% to $2,057.10/oz.
Precious metals remained volatile after two weeks of extreme price swings—both gold and silver remained well below their late-January peaks. Trading activity also tended to be thin as markets in China, South Korea, and the US were closed, thinning liquidity and making price movements more volatile.
Last week, gold and silver received support from dip-buying and a weakening dollar, coupled with safe-haven demand stemming from escalating US-Iran tensions.
However, uncertainty over the Fed's interest rate path remains, keeping the market in a "wait-and-see" mode. Pressure on gold since late January has also been fueled by sentiment surrounding a change in Fed leadership, after President Donald Trump nominated Kevin Warsh as the next Fed Chair when Jerome Powell's term ends in May. Warsh is viewed by the market as less dovish, raising concerns that monetary easing will not be as aggressive as previously expected.
ANZ believes the market's focus is shifting to the impact of tariffs, which have not yet been fully reflected in economic and inflation data, coupled with doubts about the credibility of future policy—a combination that could boost investor interest in real assets like gold. However, short-term direction remains heavily influenced by data and policy signals.
This week, the focus will be on Wednesday's release of the FOMC's January meeting minutes, which are expected to provide clearer clues about interest rate plans—especially amid investor concerns about the central bank's leadership transition.
Afterward, the market will monitor the December PCE Price Index data, the Fed's favorite inflation indicator, which has the potential to be a key determinant in shaping medium-term interest rate policy expectations. US trade and industrial production data are also on the agenda and could add volatility to the metals market.
Source: Newsmaker.id
