Silver Eases; Gold Steady Ahead of Key Policy Developments

Gold prices were largely stable in early trading on February 25, following a sharp decline in the previous session. A stronger US dollar capped gains and dampened demand for safe-haven assets.

Spot gold hovered near $5,146.18 an ounce as of 00:54 GMT, after reaching a more than three-week high earlier in the week. The metal had dropped over 1% on Tuesday (February 24) after touching that peak during early Asian trading hours. US gold futures for April delivery slipped 0.2% to $5,165 an ounce.

Silver Edges Lower

Silver prices also saw mild pressure. Spot silver eased 0.2% to $87.13 per ounce, retreating after hitting a more than two-week high on Monday (February 23). The movement mirrored gold’s consolidation phase amid cautious market sentiment.

Stronger Dollar Limits Bullion Upside

The US dollar index ticked up 0.02%, extending gains from the previous session. A firmer greenback makes dollar-denominated commodities more expensive for overseas buyers, typically restricting further advances in precious metals.

Investors continued monitoring US trade policy and geopolitical updates. The United States began implementing a temporary 10% global import tariff on Tuesday (February 24), with indications it could be raised to 15%, adding uncertainty to the broader trade outlook.

Meanwhile, Iran and the United States are scheduled to hold a third round of nuclear discussions in Geneva on Thursday (February 25), according to Oman’s foreign minister, keeping geopolitical risks on the radar.

Rate Cut Expectations Provide Underlying Support

Two US Federal Reserve officials signalled no immediate changes to interest rates. However, markets are pricing in three 25-basis-point rate cuts this year, according to CME’s FedWatch tool. Expectations of looser monetary policy over the medium term tend to support non-yielding assets such as gold.

Global equity markets advanced amid fresh optimism about artificial intelligence-driven business growth. The improved risk appetite reduced flows into safe-haven assets, contributing to the relatively muted performance of gold and silver in early trade.

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