Gold prices declined during Asian trading after breaking key technical levels, while silver faced stronger selling pressure amid continued uncertainty over the direction of US monetary policy following mixed January inflation data. This divergence restored caution in markets and kept traders in a defensive stance.
Recent price action extends a period of sharp volatility seen in metals over the past two weeks. Prices remain below late January highs, reflecting the absence of a clear directional trend and the dominance of short term positioning.
Spot gold fell to around 4,982 dollars per ounce, while April futures hovered near the 5,000 dollar level after a modest pullback. Silver recorded the steepest loss among major metals, declining nearly 3 percent toward the 75 dollar area. Platinum slipped slightly to roughly 2,047 dollars. Thin liquidity conditions due to the closure of several major markets amplified price swings.
In the background, gold had received relative support in the previous week from selective dip buying and a softer US dollar, along with heightened geopolitical tensions between Washington and Tehran. However, prices remain below recent highs after concerns emerged that Kevin Warsh’s nomination to lead the Federal Reserve following Jerome Powell could signal a less accommodative policy stance.
The US dollar traded within a narrow range after the consumer price index report prompted markets to reassess expectations for Federal Reserve policy following a moderation in January inflation. The Dollar Index eased toward the 96.8 area and is on track for a third weekly loss in a month, indicating fading upward momentum previously supported by strong employment data.
Headline inflation rose 2.4 percent year over year, below expectations and lower than December’s reading, with a noticeable moderation on a monthly basis. Core inflation matched forecasts, reflecting persistent price pressures but at a steadier pace. This mixed reading has strengthened expectations that the Fed may keep rates unchanged for a longer period, while leaving room for gradual easing should inflation continue to cool.
From a strategic perspective, investors are closely watching the upcoming Federal Reserve meeting minutes and the personal consumption expenditures price index. These releases are expected to play a decisive role in shaping the near term monetary outlook. Any surprises could either help gold regain upward momentum toward nearby resistance levels or trigger a renewed test of lower support zones if expectations of higher rates for longer intensify.
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