Gold, silver rates today: Gold and silver prices retreated on Monday, February 16, amid mild profit booking after softer US inflation data had earlier driven the precious metal back above the $5,000-per-ounce mark.
Spot gold prices were down nearly 0.27% at $5,033 per ounce, while spot silver prices fell over 2.08% to $76.34 per ounce during the Asian trading hours on Monday.
What’s driving gold and silver prices?
The US Consumer Price Index rose by 0.2% in January, easing fears of a sharper increase and strengthening expectations that the Federal Reserve may cut interest rates. Lower borrowing costs generally support non-yielding assets such as precious metals.
Gold had climbed to a record high above $5,600 in late January, driven by a surge in speculative buying that pushed the rally to extreme levels. However, a sudden sell-off at the start of the following month dragged prices back below $4,500. Amid volatile trading conditions, the metal has since recovered about half of those losses.
In China, markets remain closed this week due to the Lunar New Year holiday. Demand for precious metals in the country has been exceptionally strong in recent months, prompting authorities in the retail hub of Shenzhen to issue a stern warning against “illegal gold-trading activities.”
“The rebound in the US dollar has stabilised rather than accelerated, while US real yields remain broadly range-bound, limiting immediate downside stress on bullion,” said Ponmudi R, CEO of Enrich Money
The Enrich Money CEO said that internal market behaviour signals a shift from panic-driven liquidation toward rotational accumulation by longer-horizon participants. The tone has transitioned from forced selling to strategic positioning.
What should investors do?
Ponmudi further explained that the recent correction appears cyclical within a secular uptrend, effectively resetting momentum indicators and improving medium-term risk-reward dynamics. The medium-term directional bias across gold and silver remains constructive, provided major structural support levels are not decisively breached.
On the gold price outlook, he said that COMEX gold continues to consolidate above the $5,000 zone, successfully defending the structural demand base formed after last week’s aggressive liquidation.
“The broader multi-year rising channel remains intact, with the $4,500–$4,600 breakout cluster acting as a key long-term support region. Current price compression suggests energy build-up rather than structural weakness. As long as gold sustains above $4,900 on a closing basis, the bias remains constructive, with recovery potential toward $5,150–$5,350 on renewed safe-haven demand or incremental USD softness. Downside risks would increase meaningfully only upon a decisive violation of the $4,600 structural base,” he added.
On the silver price outlook, Ponmudi further opined that COMEX silver remains relatively more volatile than gold but is gradually stabilising within the $71–$80 structural demand corridor.
“This region aligns with previous consolidation structures and channel support, strengthening its technical importance. While speculative flows have moderated, the structural narrative of industrial demand remains intact. Sustained trade above $85 would materially improve the probability of an extension toward $90–$105 over the medium term. A failure below $71 may extend the consolidation phase but does not immediately invalidate the broader structural uptrend,” Ponmudi said.
On the other hand, Hareesh V, Head of Commodity Research at Geojit Investments Limited, said that trading may remain two-way as markets digest US policy signals and risk events in the near term.
“Dips are likely to attract buyers, supported by resilient safe-haven demand and slowing real yields. Overall, while short-term consolidation or pullbacks are possible, the long-term trajectory remains upward and does not indicate a major correction,” Hareesh said.
(With inputs from Bloomberg)
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
