Technical buying combined with tariff and geopolitical risks sent silver to a three-week high.
2026-02-26 02:02:52
On Wednesday (February 25), precious metal prices rose across the board around midday in the US session. Spot gold rose 1.1% driven by safe-haven demand, reaching $5,205.14 per ounce during the session; US gold futures for April delivery rose 0.9% to $5,224.60 per ounce during the session.
Market analysis indicates that the short-term technical outlook for gold is increasingly bullish, attracting technical traders to re-enter the market and go long. Geopolitical uncertainties and tariff inflation risks further provide gold with double safe-haven support.
Silver's gains were even stronger, becoming the leader in this round of precious metal price increases. Spot silver rose 3.8% to $90.67 per ounce, and even touched $90.43 during the session, a three-week high, up $2.954 from the previous trading day.
The recent surge in precious metal prices is driven by a combination of negative factors that have fueled market risk aversion. On one hand, the United States officially imposed a temporary 10% global import tariff on February 24th, and White House officials revealed that the Trump administration plans to further increase this rate to 15%.
Bart Melek, global head of commodities strategy at TD Securities, said that tariffs and high oil prices will jointly push up inflation, coupled with the potential risks of geopolitical conflicts, leading investors to choose gold as a hedge, which is an important reason for the rise in gold prices. In his State of the Union address, Trump also stated that almost all countries and businesses want to maintain existing tariff and investment agreements with the United States, which has also raised market concerns about the long-term nature of tariff policies.
On the other hand, the escalating geopolitical tensions between the US and Iran have become another major driver of safe-haven demand. Although Iran and the US are scheduled to hold their third round of nuclear talks in Geneva, Switzerland on February 26, and US Vice President Vance has expressed hope for the talks and a desire to resolve the issue through diplomatic means, the US has not ruled out the possibility of military action. Trump has previously elaborated on the reasons for possible military action against Iran, stating that he will not allow Iran to possess nuclear weapons. The US is currently conducting a large-scale troop buildup around Iran, with two aircraft carriers forming a pincer movement. Several European countries have also called on their citizens to evacuate from Iran. Market concerns about geopolitical conflict remain high, further boosting safe-haven buying of precious metals.
It's worth noting that the performance of external markets also provided support for the rise in precious metals. The US dollar index weakened slightly, the benchmark 10-year US Treasury yield was at 4.05%, and crude oil prices dipped slightly, hovering around $65.38 per barrel. The weakening dollar further increased the attractiveness of dollar-denominated precious metals. However, hawkish comments from Boston Federal Reserve Bank President Susan Collins somewhat limited the upside potential for gold. She stated that the US labor market was improving, inflation risks remained, and interest rates were likely to remain unchanged for some time.
(COMEX Gold Daily Chart Source: FX678)
From a technical perspective, the short-term bullish trend in precious metals is clear. The next upside target for April gold futures is to hold above the key resistance level of $5400.00, with the first resistance level at this week's high of $5269.40 and the first support level at this week's low of $5109.50. March silver futures are targeting the key resistance level of $100.00, with the first resistance level at the overnight high of $91.18 and the first support level at $86.505. Of the two major pricing mechanisms in the gold market, the most actively traded gold futures contract on the Chicago Mercantile Exchange is currently the December contract, influenced by year-end position adjustments and liquidity.
(COMEX silver daily chart source: FX678)
Regarding the future trend of precious metals, institutional opinions are somewhat divergent but generally bullish. Bank of America, in a report, pointed out that the pace of investor gold accumulation has slowed, and gold prices are expected to weaken temporarily in the spring. However, uncertainty surrounding tariff policies will make this consolidation period relatively short, and the inflationary pressure from tariffs will continue to limit the decline in gold prices. The bank is also optimistic about the long-term trend of precious metals, predicting that gold prices will reach $6,000/ounce within the next 12 months, and silver prices are expected to break through the $100/ounce mark again this year.
As a traditional safe-haven asset and inflation hedge, gold's value has become more prominent during periods of economic and geopolitical uncertainty. Bullish technical signals and long-term optimism from institutions have also made the future performance of the precious metals market a focus of attention.
Market analysis indicates that the short-term technical outlook for gold is increasingly bullish, attracting technical traders to re-enter the market and go long. Geopolitical uncertainties and tariff inflation risks further provide gold with double safe-haven support.
Silver's gains were even stronger, becoming the leader in this round of precious metal price increases. Spot silver rose 3.8% to $90.67 per ounce, and even touched $90.43 during the session, a three-week high, up $2.954 from the previous trading day.
The recent surge in precious metal prices is driven by a combination of negative factors that have fueled market risk aversion. On one hand, the United States officially imposed a temporary 10% global import tariff on February 24th, and White House officials revealed that the Trump administration plans to further increase this rate to 15%.
Bart Melek, global head of commodities strategy at TD Securities, said that tariffs and high oil prices will jointly push up inflation, coupled with the potential risks of geopolitical conflicts, leading investors to choose gold as a hedge, which is an important reason for the rise in gold prices. In his State of the Union address, Trump also stated that almost all countries and businesses want to maintain existing tariff and investment agreements with the United States, which has also raised market concerns about the long-term nature of tariff policies.
On the other hand, the escalating geopolitical tensions between the US and Iran have become another major driver of safe-haven demand. Although Iran and the US are scheduled to hold their third round of nuclear talks in Geneva, Switzerland on February 26, and US Vice President Vance has expressed hope for the talks and a desire to resolve the issue through diplomatic means, the US has not ruled out the possibility of military action. Trump has previously elaborated on the reasons for possible military action against Iran, stating that he will not allow Iran to possess nuclear weapons. The US is currently conducting a large-scale troop buildup around Iran, with two aircraft carriers forming a pincer movement. Several European countries have also called on their citizens to evacuate from Iran. Market concerns about geopolitical conflict remain high, further boosting safe-haven buying of precious metals.
It's worth noting that the performance of external markets also provided support for the rise in precious metals. The US dollar index weakened slightly, the benchmark 10-year US Treasury yield was at 4.05%, and crude oil prices dipped slightly, hovering around $65.38 per barrel. The weakening dollar further increased the attractiveness of dollar-denominated precious metals. However, hawkish comments from Boston Federal Reserve Bank President Susan Collins somewhat limited the upside potential for gold. She stated that the US labor market was improving, inflation risks remained, and interest rates were likely to remain unchanged for some time.
(COMEX Gold Daily Chart Source: FX678)
From a technical perspective, the short-term bullish trend in precious metals is clear. The next upside target for April gold futures is to hold above the key resistance level of $5400.00, with the first resistance level at this week's high of $5269.40 and the first support level at this week's low of $5109.50. March silver futures are targeting the key resistance level of $100.00, with the first resistance level at the overnight high of $91.18 and the first support level at $86.505. Of the two major pricing mechanisms in the gold market, the most actively traded gold futures contract on the Chicago Mercantile Exchange is currently the December contract, influenced by year-end position adjustments and liquidity.
(COMEX silver daily chart source: FX678)
Regarding the future trend of precious metals, institutional opinions are somewhat divergent but generally bullish. Bank of America, in a report, pointed out that the pace of investor gold accumulation has slowed, and gold prices are expected to weaken temporarily in the spring. However, uncertainty surrounding tariff policies will make this consolidation period relatively short, and the inflationary pressure from tariffs will continue to limit the decline in gold prices. The bank is also optimistic about the long-term trend of precious metals, predicting that gold prices will reach $6,000/ounce within the next 12 months, and silver prices are expected to break through the $100/ounce mark again this year.
As a traditional safe-haven asset and inflation hedge, gold's value has become more prominent during periods of economic and geopolitical uncertainty. Bullish technical signals and long-term optimism from institutions have also made the future performance of the precious metals market a focus of attention.
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