Gold prices experienced a significant weakening on Tuesday, falling by over 2.7% and reaching $4,899.5 per ounce. The downward trend followed a period of stabilization around the psychological barrier of $5,000. Although Friday's U.S. inflation data temporarily supported the precious metal's prices, low market liquidity caused by holidays in Asia and the U.S. prompted investors to take profits after January's gains.

Breaking the Price Barrier

The price of gold fell below $4,900 per ounce, losing as much as 2.7% of its value in spot transactions on Tuesday morning.

Impact of Holidays on Liquidity

Low activity due to the Lunar New Year and Presidents' Day in the U.S. favored sharp price fluctuations and profit-taking.

Interest Rate Outlook

Weaker U.S. inflation data raise hopes for rate cuts by the Fed, which in the long term could support demand for precious metals.

The precious metals market entered a phase of significant correction, and the price of gold in spot transactions fell on Tuesday morning to $4,899.5 per ounce. This is the lowest level in over a week, resulting from a combination of several market factors. Primarily, the limited liquidity due to the Lunar New Year in Asia and Monday's holiday in the United States influenced the quotes. Investors, taking advantage of the period of lower activity, decided to take profits generated during January's rally when the precious metal surpassed the $5,600 barrier. Historically, gold is perceived as a 'safe haven' during periods of uncertainty, but its prices are strongly correlated with the monetary policy of the Federal Reserve. Since the 1970s, after moving away from the gold standard, precious metal prices react sharply to fluctuations in the value of the U.S. dollar. Data on the CPI inflation indicator in the U.S., which turned out lower than forecasts, initially gave an impulse for increases. The market began pricing in at least two interest rate cuts by the Federal Reserve System in 2026. Lower rates reduce the opportunity cost of holding precious metals, which do not offer interest. However, this enthusiasm quickly faded, and the low abundance of orders in the spot market deepened the scale of Tuesday's decline, which at its peak reached 2.7%. 4899.5 USD — price of an ounce of gold after Tuesday's decline Analysts from UBS and KCM point out that the current fluctuations are a natural reaction to the lack of new fundamental stimuli. Silver, following gold's lead, also recorded losses, despite its price approaching $80 per ounce last Friday. Experts predict that until full trading resumes in China, the market may experience increased volatility around the $5,000 level. „Gold is giving back some of Friday's gains after the CPI publication because, with thin trading, there is a lack of fresh stimuli for further increases.” — Tim Waterer Change in Gold Price in February 2026: 2026-02-13: 4999, 2026-02-15: 5020, 2026-02-16: 4988, 2026-02-17T07:00: 4899.5 Comparison of Precious Metal Prices (Friday vs Tuesday Morning): Spot Gold Price: 4999 USD → 4899 USD; Percentage Change: +2.4% → -2.7%; Silver Price: 79.3 USD → 78.5 USD

Mentioned People

  • Giovanni Staunovo — Commodity analyst at investment bank UBS, forecasting stabilization of gold prices
  • Tim Waterer — Chief market analyst at KCM, commenting on the impact of low liquidity on precious metal prices