On Tuesday, February 17, gold prices showed negative dynamics, losing about 1% of their value against the backdrop of a strengthening American currency. The price decrease occurred amid low market liquidity, as key financial centers in Asia, including China, Hong Kong, and Singapore, remain closed due to the celebration of the Lunar New Year. This was reported by UNN with reference to Reuters.
Details
The main driver of the decline was the strengthening of the dollar index by 0.2%, which caused the spot price of gold to drop to around $4948 per ounce.
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In addition to the currency factor, the market was affected by the absence of new growth incentives after the release of mixed inflation data in the US last Friday. Analysts note that the current decline is also due to profit-taking by traders after the recent rally, which pushed prices to historical highs in early 2026.
Forecasts and investor expectations
Gold lost some of its positions due to low liquidity during holidays in Asia and the absence of fresh catalysts for growth. For a renewed assault on the $6000 mark, the dollar will need to return to a downward trend
Despite the current correction, the market remains in anxious anticipation of the publication of the minutes from the latest meeting of the US Federal Reserve and GDP data, which are expected later this week. These documents should provide clearer signals regarding the timing of future interest rate cuts, which is a critical factor for assets that do not yield interest income.
Currently, most market participants predict the first rate cut in June or July, which could potentially return gold to an upward trend.