Gold continued its correction, awaiting the release of the Federal Reserve meeting minutes.
2026-02-18 09:08:53
Gold prices were slightly pressured in early Asian trading on Wednesday, trading around $4,880. Market liquidity was significantly reduced due to the closure of several major Asian markets for the Lunar New Year, resulting in a lack of sustained momentum for gold price fluctuations.
Market analysts point out that trading depth decreases during Asian market holidays, making prices more susceptible to short-term capital flows. Until a clear trend emerges in the US dollar, the short-term direction of gold prices remains uncertain.
If the US dollar weakens again, bargain hunters may re-enter the market; conversely, if the dollar stabilizes and rebounds, gold may continue its slight pullback. Geopolitically, there are signs of a temporary easing in US-Iran relations.
The Iranian Foreign Minister stated that the two sides reached some consensus on "guiding principles" during nuclear negotiations. Although an agreement is not yet imminent, the easing of tensions has reduced the appeal of gold as a traditional safe-haven asset.
This is one of the reasons for the short-term pullback in gold prices. The market's current focus has shifted to the FOMC meeting minutes to be released later. Investors hope to glean more details about the Fed's future interest rate cut path.
If the minutes release a dovish signal, the dollar may come under pressure, thus supporting dollar-denominated gold prices; if the wording is cautious or hawkish, it may limit the upside potential for gold prices.
Overall, given the backdrop of low liquidity during the holiday season and the approaching key events, gold prices are more likely to consolidate and fluctuate, awaiting new macroeconomic catalysts.
From a daily chart perspective, gold entered a consolidation phase after its previous surge. The price has currently retreated to near the short-term moving average, indicating a slowdown in bullish momentum.
If the price breaks below the $4,830 support level, it could trigger a further technical pullback, with the $4,800 psychological level to watch below. If it stabilizes and breaks through the $4,900 area again, it could resume its upward trend.
The 4-hour chart shows the price is in a range-bound pattern, with weakening MACD momentum and the RSI falling back to around 50, indicating a short-term neutral bias. Overall, the short-term direction of gold will depend on the impact of the FOMC minutes on the dollar's performance.
Editor's Note:
Gold is currently in a phase of "high-level consolidation + event-driven movement." Insufficient liquidity amplifies short-term volatility, but the true determinants of the trend remain the Federal Reserve's policy expectations and the performance of the US dollar.
If the FOMC minutes reinforce expectations of an interest rate cut this year, a weaker dollar will provide new upward momentum for gold prices; conversely, if the Fed releases more cautious signals, gold prices may remain high or even decline slightly.
Before key events are resolved, the market may continue to fluctuate within a range.
Market analysts point out that trading depth decreases during Asian market holidays, making prices more susceptible to short-term capital flows. Until a clear trend emerges in the US dollar, the short-term direction of gold prices remains uncertain.
If the US dollar weakens again, bargain hunters may re-enter the market; conversely, if the dollar stabilizes and rebounds, gold may continue its slight pullback. Geopolitically, there are signs of a temporary easing in US-Iran relations.
The Iranian Foreign Minister stated that the two sides reached some consensus on "guiding principles" during nuclear negotiations. Although an agreement is not yet imminent, the easing of tensions has reduced the appeal of gold as a traditional safe-haven asset.
This is one of the reasons for the short-term pullback in gold prices. The market's current focus has shifted to the FOMC meeting minutes to be released later. Investors hope to glean more details about the Fed's future interest rate cut path.
If the minutes release a dovish signal, the dollar may come under pressure, thus supporting dollar-denominated gold prices; if the wording is cautious or hawkish, it may limit the upside potential for gold prices.
Overall, given the backdrop of low liquidity during the holiday season and the approaching key events, gold prices are more likely to consolidate and fluctuate, awaiting new macroeconomic catalysts.
From a daily chart perspective, gold entered a consolidation phase after its previous surge. The price has currently retreated to near the short-term moving average, indicating a slowdown in bullish momentum.
If the price breaks below the $4,830 support level, it could trigger a further technical pullback, with the $4,800 psychological level to watch below. If it stabilizes and breaks through the $4,900 area again, it could resume its upward trend.
The 4-hour chart shows the price is in a range-bound pattern, with weakening MACD momentum and the RSI falling back to around 50, indicating a short-term neutral bias. Overall, the short-term direction of gold will depend on the impact of the FOMC minutes on the dollar's performance.
Editor's Note:
Gold is currently in a phase of "high-level consolidation + event-driven movement." Insufficient liquidity amplifies short-term volatility, but the true determinants of the trend remain the Federal Reserve's policy expectations and the performance of the US dollar.
If the FOMC minutes reinforce expectations of an interest rate cut this year, a weaker dollar will provide new upward momentum for gold prices; conversely, if the Fed releases more cautious signals, gold prices may remain high or even decline slightly.
Before key events are resolved, the market may continue to fluctuate within a range.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
