A report from Commerzbank, written by Dr. Jörg Krämer and Bernd Weidensteiner, looks at recent changes in Gold prices. They note that Gold has partially bounced back from a prior drop. While there is still potential for prices to rise, geopolitical risks may hold back Gold’s value. The analysis points out that, unlike usual trends, the recent rise in Gold prices did not coincide with lower interest rates or increased long-term inflation expectations. Typically, these factors make Gold more attractive as a non-interest-bearing investment and a way to store wealth.

Gold Price Movements

The report indicates that even though Gold prices have recovered much of their recent losses, a decrease in uncertainties could slow down their rise and lead to a correction. If uncertainties remain high, Gold and Silver may enjoy more upward potential. In the medium term, the report forecasts that Gold and Silver prices will stabilize and partially recover from their recent low points. This content was created with AI assistance and edited by a professional. Gold and silver prices have bounced back from their slump in the fourth quarter of 2025. Unlike the major rally of 2024, the recent surge over $2,380 per ounce isn’t due to falling interest rate expectations. With inflation figures hitting 2.8% in January, the Federal Reserve appears satisfied to keep rates steady for the moment. This price shift highlights how sensitive Gold is to geopolitical news, especially regarding ongoing tensions in the Middle East and forthcoming trade talks. A sudden calm or positive resolution could quickly stop this upward trend and lead to a sharp decline. Recent weeks have shown that Gold’s support isn’t as strong as it was during the central bank buying spree of 2024.

Managing Uncertainties

Given the current uncertainty, traders might want to use options to manage their positions in the next few weeks. Buying call options could help capture potential gains if geopolitical risks rise while limiting the maximum loss on the position. This method protects against sudden price drops that might occur if tensions ease unexpectedly. Looking ahead, we anticipate a stabilization period as the market processes these risks. Traders should keep a close watch on upcoming job data and central bank meeting minutes for any changes in the outlook for rate policy. Any signs of a more cautious approach from central banks later this year could help set a stronger foundation for both Gold and Silver prices. Create your live VT Markets account and start trading now.

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