Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
On Wednesday, gold prices hovered below the flatline after hitting a fresh record high in Asian trading. By 07:07 ET (11:07 GMT), spot gold was down 0.03%, trading at $2,656.24 per ounce. Earlier in the session, the precious metal reached an all-time high of $2,670.43 an ounce.
Interest Rate Prospects and Middle East Tensions Boost Gold
Andrzej Barabasz, CC BY-SA 4.0, via Wikimedia Commons
The prospect of declining interest rates supported gold, as traders priced in a reduced opportunity cost for investing in non-yielding assets. Tensions in the Middle East, following Israeli strikes in southern Lebanon, also increased demand for the safe-haven asset. Furthermore, China’s recent economic stimulus measures added further support to gold prices, as supported by an article from BBC.
Market Awaits Fed Commentary and Inflation Data
Traders are closely watching Federal Reserve officials' comments and the release of the central bank's preferred inflation gauge on Friday for clues about U.S. monetary policy. Citi analysts predict 125 basis points in rate cuts by the Fed this year, while Goldman Sachs anticipates 25 basis point cuts at each meeting from November through June 2025.
Contrasting Views on Rate Cuts and Gold’s Future
Fed Governor Michelle Bowman cautioned against steep rate reductions, noting that key inflation indicators remain “uncomfortably above” the Fed’s target, according to an article from CNBC. Her stance contrasts with other Fed officials who argue that rate cuts are needed to ease economic pressures.
The authors are unknown, but the pictures belong to the Alliance for Responsible Mining., CC BY-SA 4.0, via Wikimedia Commons
"The scenario outlined by Ms. Bowman, while possible and gold bearish, is not one adopted by gold investors who, by initiating repeated record highs, are showing faith in more rapid rate cuts and what that means for gold," wrote HSBC analysts.
