Editor’s Note
This market analysis highlights how renewed geopolitical tensions in the Middle East are underpinning precious metals prices, with investor focus fixed on U.S. military movements. The information is provided by FPG Fortune Prosperity Global for professional reference.
On February 20, as the geopolitical fuse in the Middle East shortens once again, the precious metals market is in a quiet period before a potential breakout. FPG Fortune Prosperity Global indicates that market participants’ attention is highly focused on the dynamics of US military deployments in the Middle East. This extremely tense external environment provides solid bottom support for gold and silver. Factual data shows that the price of April gold futures has recently hovered above $5,018, while March silver futures have steadily climbed to the $78 mark. Although short-term gains have narrowed, market sentiment remains cautious and wait-and-see until regional conflict risks translate into concrete actions.
Regarding the deep evolution of the geopolitical game, FPG Fortune Prosperity Global believes the scale of this potential military conflict could far exceed previous ones. According to summaries from multiple international media sources, US military pressure in the relevant region has reached a critical point, and the possibility of joint US-Israel actions is increasing. This uncertainty not only impacts the geopolitical landscape but will also directly intervene in the pricing logic of commodities. Simultaneously, the ripple effect in the energy market is becoming apparent, with crude oil prices hitting an eight-month high, trading around $66.50 per barrel. The transmission of this inflation expectation further complicates the trajectory of precious metals.
At the monetary policy level, the Federal Reserve’s recent hawkish stance is in a tug-of-war with safe-haven buying driven by geopolitical tensions. The hawkish signals released in the January meeting minutes cannot be ignored. Policymakers’ dissatisfaction with the pace of inflation decline suggests the Fed is gradually removing recent rate cut options and may even resume rate hikes if necessary. The 10-year US Treasury yield is currently maintained at around 4.1%, which to some extent limits the upside potential for gold and silver.
At the technical level, the next strategic target for gold bulls is to firmly hold above the $5,250 resistance level, while the bullish expectation for silver points directly to $90. Although the Fed’s policy shift brings short-term pain, geopolitical “black swan” risks remain the core source of premium for precious metals.
