Global Gold Prices Swing Wildly as Investors Await Fed Interest Rate Decision
Jakarta — Global gold prices have been volatile as investors await the benchmark interest rate decision from the United States Federal Reserve. The precious yellow metal showed signs of recovery after correcting for two consecutive days.
Spot gold traded sideways below the psychological level of US$5,000, hovering around US$4,980 per troy ounce at the close of trading on Thursday, 19 February 2026. However, gold rebounded 0.82 per cent, or 40.81 points, to US$5,018.67 at 07:18 New York time, according to Gold Price.
The rise in the precious metal occurred as market participants scrutinised the direction of interest rate policy from the Federal Reserve. Minutes from the latest policy meeting indicated that Fed officials were more cautious than expected in cutting interest rates.
This stance triggered market dynamics alongside a strengthening US dollar after economic data demonstrated the resilience of the American economy. Industrial production recorded its largest increase in nearly a year, whilst core capital goods orders also grew beyond expectations.
Kaynat Chainwala, AVP Commodity Research analyst at Kotak Securities, said gold and silver bounced back after correcting for two consecutive sessions as market participants awaited further monetary policy signals.
"Investors are now awaiting the FOMC minutes, US Core PCE data, and speeches from several Fed officials to seek clues on monetary policy direction," he said.
He added that recent comments from Fed officials have been varied. Fed Governor Michael Barr tends to support keeping interest rates stable for some time, whilst Chicago Fed President Austan Goolsbee sees an opportunity for cuts if inflation approaches 2 per cent.
Meanwhile, Ponmudi R, CEO of Enrich Money, sees the general upward trend in gold as still intact. The correction that occurred was purely due to profit-taking and price consolidation.
"The uptrend in gold remains intact. The latest correction appears to be healthy profit-taking. Prices are now moving steadily around key moving averages, indicating the market is digesting earlier gains," he explained.
Spot gold traded sideways below the psychological level of US$5,000, hovering around US$4,980 per troy ounce at the close of trading on Thursday, 19 February 2026. However, gold rebounded 0.82 per cent, or 40.81 points, to US$5,018.67 at 07:18 New York time, according to Gold Price.
The rise in the precious metal occurred as market participants scrutinised the direction of interest rate policy from the Federal Reserve. Minutes from the latest policy meeting indicated that Fed officials were more cautious than expected in cutting interest rates.
This stance triggered market dynamics alongside a strengthening US dollar after economic data demonstrated the resilience of the American economy. Industrial production recorded its largest increase in nearly a year, whilst core capital goods orders also grew beyond expectations.
Kaynat Chainwala, AVP Commodity Research analyst at Kotak Securities, said gold and silver bounced back after correcting for two consecutive sessions as market participants awaited further monetary policy signals.
"Investors are now awaiting the FOMC minutes, US Core PCE data, and speeches from several Fed officials to seek clues on monetary policy direction," he said.
He added that recent comments from Fed officials have been varied. Fed Governor Michael Barr tends to support keeping interest rates stable for some time, whilst Chicago Fed President Austan Goolsbee sees an opportunity for cuts if inflation approaches 2 per cent.
Meanwhile, Ponmudi R, CEO of Enrich Money, sees the general upward trend in gold as still intact. The correction that occurred was purely due to profit-taking and price consolidation.
"The uptrend in gold remains intact. The latest correction appears to be healthy profit-taking. Prices are now moving steadily around key moving averages, indicating the market is digesting earlier gains," he explained.