Global Gold Prices Fall for Second Consecutive Day
Global gold prices declined for the second straight day on Tuesday, February 17, with the price of one ounce dropping significantly to around $4,953, extending its downward trend.
Isteqamat Press – reduced trading volumes in Asian markets due to the Lunar New Year holidays and the closure of several financial centers in East Asia have been the primary drivers of weaker demand. China and other Asian nations are among the world’s largest consumers of gold.
Alongside the decline in physical demand, investors are closely watching U.S. economic data. The release of the Federal Reserve’s meeting minutes, gross domestic product figures, and inflation indicators could clarify the direction of interest rate policy.
January’s U.S. inflation report came in below expectations, strengthening speculation about another potential rate cut. However, until more precise data are released, markets are expected to remain cautious with limited volatility.
Economic analysts say that continued easing of inflation could encourage the Federal Reserve to lower interest rates in the summer of 2026, a move that may support gold prices in the second half of the year.
On the geopolitical front, markets are also awaiting the outcome of diplomatic negotiations in Geneva regarding Iran’s nuclear program and the Russia-Ukraine War. Any breakthrough or stalemate could influence demand for gold as a safe-haven asset.
Reports suggest the gold market is currently caught between short-term pressure from weaker Asian demand and medium-term optimism about a more accommodative U.S. monetary policy, resulting in increased volatility.
