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2026-02-17 16:18:59
[Strong Dollar + Holiday Disruptions Cause Gold to Plunge Over 2%, Falling Below $4900] ⑴ On Tuesday, the gold market experienced a sharp sell-off, with spot gold prices falling by more than 2%, briefly touching $4862 per ounce, a new low in over a week since February 6. As of press time, spot gold's decline had narrowed to 1.5%, at $4917.90. ⑵ The main reasons for this decline are threefold. First, the Lunar New Year holiday in Asian markets and the US Presidents' Day holiday on Monday resulted in extremely thin market liquidity, leading to a lack of buying interest and amplifying price volatility. ⑶ Second, the US dollar index rebounded 0.3%, rising to a one-week high against a basket of currencies, making dollar-denominated gold more expensive for holders of other currencies, further suppressing demand. ⑷ In addition, signs of easing geopolitical tensions also put pressure on safe-haven assets. It is understood that US-Iran nuclear negotiations are scheduled to be held in Geneva on Tuesday, and representatives of Ukraine and Russia will also meet there this week for US-mediated peace talks. Markets are closely watching the release of the Federal Reserve's January meeting minutes on Wednesday for clues about the future path of interest rate cuts.
