Gold Reclaims $5,000, Market Focus on the Fed
Gold prices rallied back to the $5,000 per ounce area on Thursday (February 19), continuing their rally after surging around 2% in the previous session. Thin Asian trading—as most markets were closed for the Lunar New Year holiday—made price movements more volatile, while market participants focused on the direction of US interest rate policy.
Gold rose as much as 0.9% and silver strengthened as much as 3%, confirming the continued high volatility of precious metals. Markets remain sensitive since the historic sharp decline in late January, so they tend to respond more quickly to news and changes in sentiment.
The Fed's next move remains key to interest rates. Minutes of its January 27-28 policy meeting, released Wednesday, showed central bank officials appeared more cautious about cutting rates immediately, leading the market to believe that policy easing is unlikely to occur soon.
This tone has the potential to create political tension, as President Donald Trump is pushing for lower borrowing costs—which is typically positive for gold because it offers no yield. Meanwhile, the US dollar maintained its gains after US economic data showed resilience, including the largest increase in industrial production in nearly a year and stronger-than-expected core capital goods orders.
While the dollar could act as a short-term support, several major banks still expect gold to continue its upward trend, supported by concerns about the Fed's independence and geopolitical tensions. The market is also monitoring the inconclusive US-Iran nuclear talks; US officials said Iran would return in two weeks with a detailed proposal, while an Axios report assessed that a US military operation—if it occurs—could last weeks. In recent trading, spot gold rose 0.5% to $5,004.32, and silver rose 2% to $78.78. (alg)
Source: Newsmaker.id
