Precious Metals Report · February 25, 2026 · Covering February 24 Session
The Big Three
Gold consolidates at $5,185.78 (+0.86%) after a four-day rally that added 7%, as Chinese traders returned from Lunar New Year and took profits. Bloomberg reported that gold retreated as much as 2.3% intraday before recovering, with the five-session surge driven by the SCOTUS tariff ruling, Section 122 uncertainty, and a U.S.–Iran military standoff. The close near the session high ($5,210.41) suggests dip-buyers absorbed the Chinese selling pressure.
Silver surged 3.86% to $90.489, reclaiming the $90 level for the first time since the February flash-crash from $121.67 to $63.85. Chinese industrial buyers and retail investors have returned aggressively post-LNY, viewing sub-$90 prices as attractive entry points. The white metal’s outperformance compressed the gold/silver ratio to 57.3, its lowest level this year, signalling renewed risk appetite within the precious metals complex.
Thursday’s U.S.–Iran nuclear talks in Geneva represent a binary catalyst for gold: a deal could erase the $350+ war premium accumulated since last Wednesday; failure could send gold toward its January ATH of $5,595. Trump’s 10–15-day window before potential military action begins this weekend, making Thursday’s outcome the single most consequential event for precious metals this quarter. JPMorgan maintains its $6,300 year-end target, while ANZ has raised its Q2 target to $5,800.
01Session Data
| Metric | Value | Change |
|---|---|---|
| Gold (XAU/USD) Close | 5,185.78 | +0.86% |
| Gold Session High | 5,210.41 | near 1-month high |
| Gold Session Low | 5,121.42 | −2.3% intraday dip |
| Silver (XAG/USD) Close | 90.489 | +3.86% |
| Silver Session High | 91.212 | first $91 print since Feb crash |
| Silver Session Low | 86.560 | +3.6% intraday range |
| Gold/Silver Ratio | 57.3 | −1.7 (Ag outperforms) |
| DXY | 97.75 | +0.11% |
| 10Y Treasury | 4.03% | −5bp |
| S&P 500 | 6,890.07 | +0.77% |
| VIX | 19.55 | −6.95% |
| Brent Crude | $71.18 | +0.10% |
| Fed Funds Rate | 3.50–3.75% | 50bp cuts priced YE |
02Analyst Forecasts
| Institution | Gold Target | Silver Target |
|---|---|---|
| JPMorgan | $6,300 (YE 2026) | $81 avg |
| UBS | $6,200 (Sep 2026) | — |
| Deutsche Bank | $6,000 (YE 2026) | — |
| ANZ | $5,800 (Q2 2026) | — |
| SocGen | $6,000 (YE 2026) | — |
| Reuters Poll (30 analysts) | $4,746 median | — |
03Market Commentary
Gold consolidated on Tuesday after a four-session rally that added more than 7% from $4,842.60 to a one-month high of $5,250. Bloomberg reported the metal fell as much as 2.3% during the Asian session as Chinese traders returned from the Lunar New Year break and took profits. However, Western dip-buyers absorbed the selling, pushing gold back to close at $5,185.78 (+0.86%), near the top of its intraday range. The recovery confirms that the geopolitical bid remains intact despite short-term profit-taking.
Silver was the standout performer, surging 3.86% to $90.489 on a wave of post-LNY Chinese physical demand. The white metal has now recovered 42% from its February 2 flash-crash low of $63.85, which followed the liquidation-driven plunge from the January ATH of $121.67. Chinese industrial buyers, particularly solar manufacturers, returned as aggressive buyers in the $85–90 range, according to FinancialContent. The Silver Institute forecasts a 67 million-ounce supply deficit in 2026, the fifth consecutive year of structural shortfall, while JPMorgan projects an average price of $81/oz for the year.
The macro backdrop is gold-supportive across multiple axes. The SCOTUS ruling that struck down IEEPA tariffs created a policy vacuum, prompting Trump to invoke Section 122 with a 15% flat tariff that takes effect February 24 and can remain for 150 days without Congressional approval. The U.S.–Iran standoff continues to intensify, with Trump’s 10–15-day window for a nuclear deal compressing ahead of Thursday’s Geneva talks. FX Empire’s James Hyerczyk described the $4,842–$5,250 rally as driven almost entirely by the Iran war premium, warning that a deal could erase those gains rapidly.
Central bank demand continues to provide a structural floor. JPMorgan expects 585 tonnes of quarterly demand from central banks and investors in 2026, with around 800 tonnes of central bank purchases alone. This buying has decoupled gold from its traditional inverse relationship with the dollar — gold gained 0.86% on Tuesday even as the DXY rose 0.11%. The gold/silver ratio compressed to 57.3, reflecting silver’s superior beta to risk-on sentiment and industrial demand recovery. JPMorgan cautioned that without central banks as structural dip-buyers, silver remains vulnerable to a widening of the ratio in a risk-off scenario.
04Technical Analysis
Gold (1D):
Gold closed exactly on the Tenkan-sen at $5,185.78, a pivotal level that will determine the short-term direction. The Kijun-sen at $5,059.50 provides secondary support, while the Ichimoku cloud at $4,999–$5,022 offers a structural floor well below current price. The 200-SMA at $4,696.61 sits 9.4% below, confirming the uptrend remains firmly intact. On the Bollinger Bands, price is in the upper half ($5,045 mid, $5,319 upper), reflecting a constructive but not overbought configuration. The MACD at 101.31/98.19 remains positive with a histogram of 3.12, though the compressed reading suggests momentum is decelerating. RSI at 58.89/56.07 is comfortably above neutral, indicating room for further gains before overbought conditions emerge.
Silver (1D):
Silver closed at $90.489, decisively above the Tenkan-sen at $87.200 and the Kijun-sen at $83.209, confirming the bullish Ichimoku structure. The cloud at $81.492–$81.571 is distant and flat, providing layered support. The 200-SMA at $53.180 sits 41% below, reflecting the extreme magnitude of the 2025–2026 secular rally. The Bollinger setup is noteworthy: price is between the mid-band ($82.949) and upper band ($101.178), with the wide band spread (44%) reflecting the extraordinary volatility since the flash crash. The MACD is at the zero line (0.780/−0.779, histogram 0.001), on the cusp of a bullish crossover that, if confirmed, would signal the resumption of the uptrend. RSI at 55.88/47.91 shows the fast line leading higher — constructive divergence.
| Gold Level | Price | Reference |
|---|---|---|
| Resistance 3 | $5,595 | Jan 29 ATH |
| Resistance 2 | $5,319 | BB upper |
| Resistance 1 | $5,250 | Feb 24 spike high |
| Pivot | $5,186 | Tenkan-sen / Close |
| Support 1 | $5,060 | Kijun-sen |
| Support 2 | $5,000 | Psychological / Cloud top |
| Support 3 | $4,843 | Feb 19 swing low |
| Silver Level | Price | Reference |
|---|---|---|
| Resistance 3 | $101.18 | BB upper |
| Resistance 2 | $92.83 | Feb 10 swing high |
| Resistance 1 | $91.21 | Session high |
| Pivot | $90.49 | Close |
| Support 1 | $87.20 | Tenkan-sen |
| Support 2 | $83.21 | Kijun-sen |
| Support 3 | $81.49 | Cloud (Span B) |
05Forward Look
U.S.–Iran Geneva Talks (Thursday).
This is the week’s defining binary event. A breakthrough deal could erase the $350+ war premium, sending gold back toward $4,843 (the Feb 19 swing low) and silver toward the Kijun at $83. A breakdown in talks — or explicit military escalation — could propel gold toward $5,400–$5,500 and silver back above $100. With Trump’s stated 10–15-day window for a deal beginning this weekend, volatility will increase sharply from Thursday onward.
Silver’s MACD Bullish Crossover Attempt.
Silver’s MACD histogram is at 0.001, essentially zero, placing it at the exact inflection point for a bullish crossover. If confirmed by a close above $91 on Wednesday, this would be the first positive MACD signal since the flash crash and could attract systematic trend-following capital. Failure to cross would signal continued range-bound consolidation between $82 and $92.
Section 122 Tariff Inflation Pass-Through.
The 15% flat tariff takes effect February 24 and can remain for 150 days. If inflation expectations rise in response — particularly in Friday’s January PPI print — gold’s role as an inflation hedge will be reinforced. The Fed’s paralysis (holding at 3.50–3.75% amid a tariff/inflation/growth dilemma) is structurally gold-positive: central banks cannot address trade-driven inflation with rate hikes without crushing growth.
Verdict
Gold’s consolidation near $5,186 after a 7% four-day rally is constructive, not corrective. The close at the Tenkan-sen, the recovery from the 2.3% intraday dip, and the RSI at 59 all suggest a market pausing for breath, not topping out. The structural bid from central bank buying (585t/quarter), geopolitical uncertainty (Iran, tariffs), and decoupling from traditional dollar headwinds argues for higher prices into Q2.
Silver’s 3.86% surge and pending MACD bullish crossover make the white metal the higher-beta trade. The recovery from $63.85 to $90+ in three weeks is extraordinary, driven by Chinese post-LNY physical demand and a structural 67M-ounce supply deficit. However, JPMorgan’s caution that silver lacks the central bank backstop of gold means that any Iran deal or risk-off shock could trigger disproportionate downside.
The binary risk is Iran. Thursday’s Geneva talks will either validate the $5,200+ rally with further escalation or strip out the war premium entirely. Position sizing should reflect this asymmetry. The institutional consensus ($6,000–$6,300 gold by year-end) provides a structural anchor for dip-buying on any deal-driven pullback.
Bias: BULLISH · gold structurally bid, silver higher-beta play; Iran talks Thursday = binary catalyst