Gold and Silver Hold Firm as Dollar Eases and Geopolitical Risks Linger

Gold prices remained firm on Thursday (February 26), supported by currency movements and lingering geopolitical uncertainty, even as investors evaluated evolving expectations around US interest rates and trade policy.

Spot gold rose 0.3% to $5,184.43 per ounce in early trade, hovering close to a more than three-week high touched earlier this week. However, US gold futures for April delivery declined 0.5% to $5,199.20 an ounce, reflecting mild profit booking after the recent rally.

Silver Extends Gains After Rally

Silver prices also edged higher, tracking gold’s strength. Spot silver rose 0.1% to $89.49 per ounce after hitting a three-week high in the previous session. The metal has mirrored gold’s safe-haven appeal in recent sessions while also drawing support from its industrial demand profile. 

Softer Dollar Supports Bullion

A weaker US dollar lent support to precious metals. The greenback eased after stronger-than-expected earnings from Nvidia boosted broader risk sentiment, while markets continued to await clarity on fresh US tariff measures.

A softer dollar typically makes gold more affordable for holders of other currencies, thereby increasing demand.

Trade Tensions and Geopolitics in Focus

On the trade front, US Trade Representative Jamieson Greer said tariff rates for certain countries could rise to 15% or higher from the newly imposed 10%, although no specific trading partners were named.

At the same time, investors tracked ongoing US–Iran talks in Geneva aimed at resolving their long-standing nuclear dispute. These developments have helped sustain safe-haven demand for gold.

Rate Cut Bets Shape Outlook

Interest rate expectations remain central to gold’s trajectory. Markets are currently pricing in three 25-basis-point rate cuts by the Federal Reserve this year, according to CME’s FedWatch tool.

Investors are now awaiting weekly US jobless claims data for further signals on the Fed’s policy path. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets such as gold.

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