Global gold prices surge despite hawkish Fed stance and geopolitical concerns
Gold prices rise over 2% as geopolitical risks heighten, with investors reacting to rising tensions in Iran and Russia despite the Federal Reserve's mixed outlook on interest rates
Global Gold Price Surge Amid Geopolitical Risks
Key highlights:
- Gold prices rise over 2%: Spot gold hits $4,992.11 per ounce.
- Geopolitical tensions: Concerns over rising risks with Iran and Russia.
- Mixed Fed outlook: Fed officials are divided on whether interest rates should rise again.
- Fed's January meeting report: Highlights a split in views on interest rate hikes.
The price of gold surged more than 2% on February 18, 2026, after falling the previous day. Geopolitical tensions, particularly between Iran and the U.S. and the ongoing conflict in Ukraine, caused investors to seek the safe haven of gold, despite the U.S. Federal Reserve's ongoing debate about future interest rate hikes.
At 2:18 PM EST (7:18 PM GMT), spot gold increased by 2.4%, reaching $4,992.11 per ounce, following a decline to $4,841.74 on February 17, its lowest level in a week. Meanwhile, U.S. gold futures for April delivery closed up 2.1%, settling at $5,009.50 per ounce.
Edward Meir, an analyst from Marex, noted, "There are concerns about the geopolitical tensions with both Iran and the U.S." However, he emphasized that February trading had remained narrow and lacked a clear direction.
Amid these uncertainties, the minutes from the Federal Reserve's January meeting revealed a split among officials over whether to raise interest rates again. Some expressed concerns about high inflation, while others debated whether further rate hikes were necessary.
Gold Price Forecast
Despite the Fed's hawkish tone, many analysts predict gold prices may recover back to the $5,000 level. "Gold is likely to return to $5,000, even though the Fed’s minutes are somewhat aggressive. The market doesn’t expect a rate change until June," said independent metals trader Tai Wong.
In addition to gold's rise, silver prices saw a 5.2% increase, reaching $77.24 per ounce, while platinum prices climbed by 3.5%, reaching $2,078.28 per ounce. Palladium also rose by 1.2%, settling at $1,702.75 per ounce.
