Gold Trims Daily Losses; Remains in the Red Zone Above $4,900
Gold continued its decline for a second day, briefly touching its lowest level in more than a week at around $4,858/oz on Tuesday (February 17th), before paring losses and regaining ground above $4,900/oz.
Pressure came from a combination of the dollar's continued strength from the previous session and risk-on sentiment, which has reduced the need for safe-haven assets, resulting in dwindling demand for gold.
However, gold's decline has not yet indicated a "free fall" as the market still believes the US interest rate path remains tilted toward easing: the likelihood of a cut starting mid-year remains high, making it difficult for the dollar to strengthen aggressively and provide a cushion for non-yielding metals like gold.
Market participants are now choosing to hold large positions while awaiting clearer guidance from the FOMC meeting minutes, scheduled for release on Wednesday at 2:00 PM US time (2:00 AM WIB Thursday).
After the Minutes, attention will shift to Friday's PCE data—the Fed's favorite inflation indicator—which has the potential to alter expectations for interest rates, move the dollar, and ultimately determine whether gold has room to recover or comes under further pressure.
Beyond monetary factors, the market remains sensitive to geopolitics ahead of the second round of US-Iran nuclear talks in Geneva. Concerns about escalation could revive safe-haven demand, but if headlines point to de-escalation, risk-on sentiment could again curb gold's recovery.
Against a mixed backdrop—risk-on pressure, while rate cut expectations and geopolitical risks restrain declines—gold's movement is expected to remain choppy until signals from the Minutes and PCE data provide a firmer direction.
Source: Newsmaker.id
