Today’s gold and silver rates: On Monday, February 16, gold and silver prices fell as a result of minor profit booking. Earlier, the precious metal had risen back above $5,000 per ounce due to lower US inflation figures.
During Monday’s Asian trading hours, spot silver prices dropped more than 2.08% to $76.34 per ounce, while spot gold prices dropped over 0.27% to $5,033 per ounce.
What influences the price of gold and silver?
The US Consumer Price Index increased by 0.2% in January, boosting anticipation that the Federal Reserve would lower interest rates and allaying concerns of a more rapid increase. In general, non-yielding assets like precious metals benefit from lower borrowing costs.
In late January, gold reached a record high above $5,600, propelled to stratospheric heights by a spike in speculative buying. However, prices dropped back below $4,500 at the beginning of the next month due to a sharp sell-off. Since then, the metal has regained around half of those losses despite erratic trading circumstances.
Because this week is Lunar New Year, markets in China are closed. Authorities in Shenzhen, the nation’s retail center, have issued a strong warning against “illegal gold-trading activities” due to the unusually high demand for precious metals in recent months.
According to Ponmudi R, CEO of Enrich Money, “the US dollar’s recovery has stabilized rather than accelerated, and US real rates are still largely range-bound, reducing immediate downward impact on bullion.”
According to the CEO of Enrich Money, internal market behavior indicates that longer-horizon investors are moving away from panic-driven liquidation and toward rotational accumulation. From coercive selling to strategic positioning, the tone has changed.
How should investors proceed?
Ponmudi went on to say that the latest correction, which successfully reset momentum indicators and improved medium-term risk-reward dynamics, seemed cyclical inside a secular advance. As long as significant structural support levels are not significantly broken, the medium-term directional bias across gold and silver is still positive.
Regarding the forecast for the price of gold, he stated that COMEX gold is successfully defending the structural demand base that was established following last week’s sharp liquidation, and it is still consolidating above the $5,000 zone.
With the $4,500–$4,600 breakout cluster serving as a crucial long-term support area, the larger multi-year ascending channel is still in place. Rather than structural weakness, the current price compression points to energy accumulation.
The bias is still positive as long as gold closes above $4,900, with a potential recovery toward $5,150 to $5,350 due to either additional USD weakening or fresh safe-haven demand. Only a clear violation of the $4,600 structural base would result in a significant increase in downside risks, he continued.
Regarding the future for the price of silver, Ponmudi added that COMEX silver is steadily stabilizing within the $71–$80 structural demand corridor, albeit still being comparatively more volatile than gold.
This region’s technical significance is strengthened by its alignment with prior consolidation structures and channel support. The structural narrative of industrial demand has not changed, notwithstanding the moderating speculative flows.
Over the medium term, a sustained trade over $85 would significantly increase the likelihood of an extension toward $90–$105. Ponmudi stated that while a breakdown below $71 might prolong the consolidation phase, it would not instantly invalidate the larger structural upswing.
However, as markets process US policy signals and risk events in the near future, trade might continue to be two-way, according to Hareesh V, Head of Commodity Research at Geojit Investments Limited.
“Slowing real yields and strong safe-haven demand are likely to draw buyers to dips.” Overall, the long-term direction is still increasing and does not point to a significant correction, even though there may be short-term consolidation or pullbacks, according to Hareesh.
