Ahead of Two High-Stakes Negotiations, Precious Metals Prices Continue to Drop
BlockBeats News, February 17th: During the Chinese New Year holiday market closure, precious metals continued to decline. Spot gold once fell to the $4860 per ounce level, down about 2.6% intraday, after falling 1% the previous trading day; spot silver plummeted over 4% intraday, dropping below the $73 level.
Market sentiment was influenced by expectations of geopolitical negotiations. U.S. President Trump stated that he would participate "indirectly" in the U.S.-Iran nuclear talks in Geneva and said that Iran is willing to reach an agreement; at the same time, the third round of Russia-U.S.-Ukraine talks may focus on territorial issues. Analysts pointed out that if the diplomatic situation eases, funds may flow into risk assets, suppressing safe-haven demand.
DHF Capital CEO Bas Kooijman stated that the cautious optimism brought by the negotiations weakened safe-haven buying. City Index analyst Fawad Razaqzada pointed out that if the gold price continues to operate below $5000, the short-term downside risk will increase, potentially further dampening bullish sentiment. KCM analyst Tim Waterer believes that in the context of global tight liquidity, gold currently lacks a strong catalyst in the short term and may need to wait for the U.S. dollar to weaken further.
Previously, speculative buying had pushed gold prices to near the historical high of $5600, but then fell sharply to around $4400 in the following two days, maintaining recent volatility.
Several investment banks still maintain a long-term bullish view. Institutions including BNP Paribas, Deutsche Bank, and Goldman Sachs believe that geopolitical risks, the controversy over the Fed's independence, and the global de-dollarization trend will continue to support the gold price. Credit Suisse analysts have raised their 2026 gold price expectation from $4200 to $5000, believing that inflation and U.S. dollar devaluation remain core macro drivers.
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