Global Gold Price Drops Below US$4,900 — Are Investors Abandoning Safe Haven Assets?
Jakarta, VIVA — Global gold prices fell below the psychological level of US$4,900 per ounce during trading on Wednesday, 18 February 2026. The significant decline occurred as the US dollar strengthened and liquidity thinned due to Lunar New Year holidays in several Asian countries.
The weakness came after the US dollar briefly strengthened by as much as 0.4 per cent before eventually trading flat, making the precious metal more expensive for buyers using other currencies.
Citing Yahoo Finance, global gold prices weakened 2.3 per cent to US$4,877.87 — approximately Rp82.3 million (estimated at an exchange rate of Rp16,870 per US dollar) per ounce — as of 4.50pm New York time. Silver also declined 4.1 per cent to US$73.49 or approximately Rp1.23 million per ounce.
Silver was observed plunging as much as 6 per cent before paring some of its losses. Platinum and palladium also experienced declines.
Pressure on gold emerged alongside risk-off sentiment in global equity markets and potential geopolitical tensions in the Middle East. Limited market participation due to extended holidays in China and several Asian countries made price movements more volatile.
Forex market analyst Fawad Razaqzada assessed that thin liquidity meant the price direction was not yet entirely clear, particularly in terms of whether there was sufficient momentum to push gold prices further down, or whether buyers would re-enter the market should the US dollar weaken again.
He added that there remained room for short-term weakness, with the possibility of a correction as investors unwound safe haven positions and realised profits.
“There is room for short-term weakness as investors begin to unwind hedging positions and take profits whilst valuations remain at historically elevated levels,” he said.
Gold recorded a strong rally throughout January 2026 before experiencing a sharp selloff at the end of the month. After briefly breaching US$5,595 per ounce, gold prices plummeted to near US$4,400 in just two days. Shares of major North American gold mining companies also weakened in line with the decline in bullion prices, including Newmont Corp., Barrick Mining Corp., and Agnico Eagle Mines Ltd.