Gold, Silver Prices Dip on Low Liquidity

Gold and silver prices experienced a downturn, primarily attributed to diminished trading activity as major markets observed holidays. The Lunar New Year closure in China and the Presidents' Day holiday in the US significantly reduced global liquidity and investor participation.

Adding to the pressure, a strengthening US dollar made precious metals less affordable for those using other currencies, thus dampening global demand. Mixed economic signals from the US, including higher-than-expected job growth alongside lower-than-expected consumer price increases, have created uncertainty regarding potential Federal Reserve interest rate cuts.

Precious metals typically perform better in a low-interest-rate environment. The Federal Reserve's future monetary policy, inflation trends, and the continued strength of the US dollar are now critical factors influencing the metals' trajectory. Analysts have revised gold price targets downward, reflecting current market conditions and uncertainty about when interest rates might decrease.

Market participants are closely monitoring central bank actions, economic data, and geopolitical developments. The outlook for gold and silver remains fluid, contingent upon a combination of interest rate expectations, inflation figures, and overall global economic stability. Investors are advised to observe these key indicators to gauge whether prices will recover or continue their decline.