Editor’s Note
Spot gold remains range-bound between $4,700 and $5,100 per ounce, yet is experiencing significant volatility driven by global signals and market indicators. This period of heightened fluctuation underscores the complex forces currently shaping precious metals markets.
Spot Gold has been stuck in a range of $4700 to $5100 per ounce for some time. Although it is within a range, heavy volatility is being observed due to global signals and various indicators.
In the week ending February 13, Spot Gold closed at $5042, which was its highest weekly closing ever.
During the week of February 13, gold touched a high of $5120 on February 11, while on February 12 it fell to $4878.
On February 12, gold prices saw a sharp decline of over $200. Behind this major drop was a Bloomberg report which claimed that according to a Kremlin (Russia) memo, Russia could return to the US dollar. It also mentioned strategic deals with the US in areas like natural gas, minerals, and petroleum. However, when both countries refrained from official comment, a rapid recovery was seen in gold prices.
Some key reasons for gold prices remaining under pressure in today’s trading are as follows:
Due to the ‘Presidents’ Day’ holiday in the US on February 16 and the start of the ‘Lunar Holiday’ in China lasting until February 23, liquidity in the market has been quite low.
Investors’ eyes are fixed on the second round of talks between the US and Iran starting in Geneva today, February 17. Before these talks, investors appear quite cautious, which is leading to a downward trend in gold prices.
At the time of writing this article, the yellow metal was trading around $4992 with a decline of nearly 1%.
Based on market experts’ analysis, some important facts emerge:
The market sentiment is expected to remain negative (bearish) for today.
Supply and demand in the silver market are quite balanced, making the possibility of stability low and volatility high.
The outcome of the Geneva talks and global economic data will determine the direction of gold in MCX and the domestic market in the coming days.
Currently, gold is in a situation where every global news is affecting its price. If you are planning to invest or make a purchase today, it is essential to keep the market volatility in mind. In the opinion of experts, a slight decline in prices may be seen today, but long-term trends will still depend on global political talks.