Gold and Silver Prices Rise, But More Traders Opt for Caution
Gold and silver prices have climbed amidst market participants increasingly factoring in tighter monetary policies from the United States Federal Reserve (The Fed) this year. Investors are also continuing to monitor developments in the Middle East conflict.
According to Refinitiv, gold prices closed at US$ 4,354.74 per troy ounce on Tuesday (2/22/2026), marking a slight increase of 0.27%. This rise follows a 0.8% decline in gold prices on Monday.
As of Wednesday (2/23/2026) at 06:28 WIB, gold prices strengthened by 0.17% to US$ 4,362.35 per troy ounce.
“The issue is that, even though oil prices have fallen slightly, the market is still strongly pricing in a Fed interest rate hike. In recent days, the US dollar has also strengthened, which typically exerts pressure on gold,” said Bart Melek, head of global commodity strategy at TD Securities, as quoted by Refinitiv.
Traders now see a 90% probability of the Fed raising interest rates in December, according to the CME FedWatch Tool.
The market is focused on the potential for monetary tightening after St. Louis Fed President Alberto Musalem and Chicago Fed President Austan Goolsbee hinted at the need for further rate hikes to curb inflation driven by strong demand and rising energy prices.
Notably, the Fed raised interest rates last week. Fed Chair Kevin Warsh also hinted that further rate hikes could occur in the coming months.
Since the US-Israel war against Iran broke out in late February, rising energy prices have heightened inflation concerns and prompted central banks in various countries to maintain tight monetary policies. These conditions have pressured gold prices, which have plummeted more than 22% since hitting a record high of US$ 5,594.82 per ounce in January.
While gold is traditionally considered a hedge against inflation, its appeal diminishes when interest rates are high, as investors have access to alternative assets that generate yields.
Oil prices also fell to a two-week low on Tuesday as the supply outlook from the Gulf region improved. Iran has hinted it could reopen the Strait of Hormuz within seven days, while Saudi Arabia prepares to continue exports from the port of Yanbu.
Silver prices have moved in tandem with gold. According to Refinitiv, silver prices closed at US$ 67.08 per troy ounce on Tuesday (2/22/2026), surging by 1.6%.
This increase follows a 0.8% decline in silver prices on Monday. As of Wednesday (2/23/2026) at 06:28 WIB, silver prices strengthened by 0.5% to US$ 67.35 per troy ounce.