Market Update
Gold (XAU) and silver (XAG) prices closed flat on February 24, 2026, with no significant price movement for either metal. Gold settled at $5161.30, while silver remained unchanged at $587.85.
Technical Analysis: Gold (XAU)
The lack of movement in gold prices suggests a pause in the ongoing trend reversal we have been tracking since January. The metal's inability to break above its 50-day moving average ($5193.15) indicates potential resistance from the short-term mean reversion phenomenon. However, we still view this as an opportunity for bulls to accumulate at current levels.
Macro Analysis: Gold (XAU)
The lack of inflationary pressures in recent data releases has kept the gold price contained. The Federal Reserve's continued dovish stance on interest rates and monetary policy is also a supporting factor for the metal. Nevertheless, we cannot ignore the subtle rise in Treasury yields over the past week, which may weigh on gold prices if it persists.
Inflation expectations have been well within the Fed's comfort zone, allowing for a more accommodative policy framework. However, if we see a sudden spike in inflation or an unexpected tightening of monetary policy, gold could benefit from its traditional safe-haven status. For now, we remain cautiously optimistic on gold prices.
Technical Analysis: Silver (XAG)
Silver's price action has mirrored that of gold, with no significant movement to report. The metal's inability to break above its 50-day moving average ($588.45) suggests a possible retest of the lower support level at $581.97.
Macro Analysis: Silver (XAG)
Similar to gold, silver's price stagnation is largely attributed to the lack of inflationary pressures and the continued dovish stance from central banks. The metal has historically been more sensitive to economic growth prospects and industrial demand, which currently appear subdued.
The recent rally in the US dollar may also be a factor in the flat pricing for both metals. A strong USD typically weighs on precious metals as it increases their cost basis for holders of other currencies. However, we note that the current level of USD strength is still below its 50-day moving average and does not pose an immediate threat to gold or silver prices.
Trading Bias
Our short-term trading bias for both metals remains neutral-to-bullish, albeit with a heightened risk of correction. We expect gold prices to hover around current levels ($5161-$5212) while accumulating strength ahead of the metal's next major resistance level at $5300.
For silver, we anticipate a possible retest of its lower support at $581.97 before attempting a breakout above its 50-day moving average. If successful, this could push silver prices towards $600 and potentially even higher.
Key Support and Resistance Levels
| Metal | Price (USD) | Change | % Change | Day High | Day Low |
|---|---|---|---|---|---|
| Gold (XAU) | 5161.30 | 0.00 | 0.00% | 5212.91 | 5109.69 |
| Silver (XAG) | 587.85 | 0.00 | 0.00% | 593.73 | 581.97 |
Actionable Insights and Risk Management
In conclusion, while we expect a neutral-to-bullish bias for both metals in the short term, investors should remain cautious of potential corrections ahead. We recommend maintaining a balanced portfolio allocation between gold and silver, with an emphasis on accumulating positions at current levels.
As always, it is essential to maintain proper risk management techniques when trading or investing in precious metals. Set clear stop-loss orders, keep an eye on market news and events that may impact prices, and do not hesitate to adjust your strategy as needed.
We will continue to monitor the markets closely and provide updates as necessary. Stay informed, stay disciplined, and trade responsibly.
By Malik Abualzait
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