Gold & Silver Slump, Risk-On Sentiment Weighs
Gold and silver prices continued their decline on Tuesday (February 17th) as the US dollar strengthened and market participants awaited the release of the next US economic data and the FOMC meeting minutes. Spot gold fell 2.29% to $4,876.70/oz, while spot silver fell 4.42% to $73.229/oz.
The strengthening dollar again weighed heavily on greenback-denominated precious metals. The dollar index (DXY) rose 0.26% to 97.07, making gold and silver relatively more expensive for buyers outside the US and dampening short-term buying interest.
From a geopolitical perspective, market attention was also focused on the US-Iran diplomatic process in Geneva. A statement from Iran stating that there was an understanding of "guiding principles" for continuing discussions on a draft agreement helped ease tensions—and this curbed demand for safe-haven assets like gold, although regional risks have not completely disappeared.
Looking ahead, the direction of precious metals remains highly sensitive to the combination of the Fed's policy tone and geopolitical headlines. The market is likely to remain defensive: if the dollar continues to strengthen and risk appetite remains strong, gold and silver could struggle to recover. Conversely, if US data weakens and expectations of interest rate cuts strengthen, there remains room for a rebound—especially after the volatile movements of the last few sessions.
Source: Newsmaker.id
