Editor’s Note
This article reports on the recent sharp surge in gold and silver prices, highlighting the market volatility and its immediate impact on consumer sentiment. The dramatic overnight gains underscore the unpredictable nature of commodity markets.
From February 20th to 21st, international gold and silver prices suddenly went ‘crazy’. Spot gold surged over 2% in a single day, reclaiming the $5,100 per ounce level, while silver skyrocketed nearly 8%. Domestic gold jewelry prices followed suit, approaching 1,600 yuan per gram.
The story begins on the evening of February 20th. During the New York late trading session, the precious metals market suddenly ‘took off’. The spot gold price climbed steadily, closing up 2.2% at $5,111.125 per ounce, accumulating a weekly gain of over 1.3%. Silver was even more dramatic, with a single-day increase of nearly 8% and a weekly surge exceeding 9%, pushing its price to $84.625 per ounce. Domestic gold stores quickly followed by ‘changing price tags’. Lao Miao Gold’s pure gold jewelry was quoted at 1,598 yuan per gram, nearly 100 yuan more expensive than the previous day. Brands like China Gold, Chow Tai Fook, and Chow Sang Sang also saw their pure gold prices generally above 1,550 yuan, rising 40-50 yuan per gram in a day.
Behind this rally, several key factors are ‘combining forces’.
On one hand, US President Trump held an impromptu White House press conference on February 20th, announcing plans to impose a 10% import tariff on global goods to replace previously court-deemed illegal large-scale tariff measures. Such news immediately heightened market concerns about trade conflicts and inflation, prompting funds to flow into traditional ‘safe havens’ like gold and silver.
On the other hand, recent weak US economic data has led markets to bet on potential future interest rate cuts by the Federal Reserve. A weaker US dollar naturally lifts dollar-denominated precious metals. Coupled with sustained gold purchases by global central banks and ongoing geopolitical tensions, the long-term bullish sentiment for gold was already strong. This event was merely a concentrated outburst of that sentiment.
Analysts caution that while the rise has been sharp, a potential decline could be equally severe. Some institutions predict gold prices could reach $6,300 by the end of 2026, but short-term volatility is likely to resemble a ‘rollercoaster’. Those chasing the peak risk being shaken off.
Ultimately, this gold and silver rally is the result of a combination of sentiment, data, and geopolitics ‘igniting the fire’. For the average person, it’s fine to watch the spectacle, but blindly following the trend and chasing highs could easily leave one ‘burned’ at the peak.
