Gold edged higher on Wednesday (February 18, 2026), supported by short-term buying following a sharp drop of more than 2% in the previous session, fueled by optimism surrounding the nuclear negotiations between the United States and Iran.
However, thin trading volumes due to the Lunar New Year holiday in most Asian markets continued to weigh on prices.
Spot gold rose 0.2% to $4,886.69 per ounce by 01:10 GMT, after falling to its lowest level in more than a week on Tuesday.
Meanwhile, the US dollar continued its ascent, buoyed by escalating geopolitical risks. This kept markets on edge, awaiting the minutes of the Federal Reserve meeting for any clues about the future path of interest rate cuts. A stronger dollar typically makes gold, which is priced in dollars, more expensive for holders of other currencies.
Trading activity was also affected by reduced liquidity due to the closure of markets in China, Hong Kong, Singapore, Taiwan, and South Korea for the Lunar New Year holiday, increasing the likelihood of volatility during current sessions.
The CME Group’s FedWatch tool shows that markets are currently pricing in three US interest rate cuts this year, each by 25 basis points.
The yellow metal reversed its trend and rose 0.2% despite weak trading in Asia.
