Ahead of Two High-Stakes Negotiations, Precious Metals Prices Continue to Drop

**Feb 17 Precious Metals Slide Amid Geopolitical Negotiation Hopes** Precious metals extended losses during Chinese New Year holiday market closures. Spot gold briefly hit $4,860/oz, down ~2.6% intraday—following a 1% drop in the prior session. Spot silver plunged over 4% intraday, falling below $73/oz. Market sentiment was shaped by geopolitical negotiation expectations. U.S. President Trump said he would participate “indirectly” in U.S.-Iran nuclear talks in Geneva, adding Iran is open to a deal. Meanwhile, the third round of Russia-U.S.-Ukraine talks may focus on territorial issues. Analysts note easing diplomacy could shift funds to risk assets, pressuring safe-haven demand. DHF Capital CEO Bas Kooijman said cautious optimism from the talks weakened safe-haven buying. City Index analyst Fawad Razaqzada noted gold’s short-term downside risk rises if it stays below $5,000/oz, potentially dimming bullish sentiment. KCM’s Tim Waterer added gold lacks near-term catalysts amid global tight liquidity and may need further U.S. dollar weakness. Previously, speculative buying pushed gold near its $5,600/oz historical high—only to plunge to ~$4,400 in two days and trade volatile recently. Several investment banks remain long-term bullish. BNP Paribas, Deutsche Bank, Goldman Sachs and others cite geopolitical risks, Fed independence debates, and global de-dollarization as ongoing gold supports. Credit Suisse raised its 2026 gold forecast to $5,000/oz from $4,200, pointing to inflation and U.S. dollar devaluation as core macro drivers.