Gold and silver prices rebounded sharply after declining for two consecutive days. Gold surged more than 2% as geopolitical concerns intensified, even though officials at the Federal Reserve (the Fed) remained divided over the future path of interest rates.

On Wednesday (February 18, 2026), global gold prices jumped 2.09% to US$4,979.07 per troy ounce, breaking the two-day losing streak.

However, in Thursday’s (February 19, 2026) trading as of 06:19 WIB, spot gold prices edged down 0.06% to US$4,976.2 per troy ounce.

The rally in gold prices on Wednesday was driven by investors weighing escalating geopolitical risks, despite minutes from the Fed’s January meeting indicating differing views among policymakers on whether interest rates should be raised again or kept unchanged.

Marex analyst Edward Meir stated that concerns persist over geopolitical tensions involving Iran and the United States. He added that throughout much of February, prices have traded within a relatively tight range, making it difficult to identify a clear directional trend.

On the geopolitical front, two days of peace talks in Geneva between Ukraine and Russia concluded on Wednesday without any breakthrough. The White House also noted that discussions with Iran in Geneva yielded only limited progress, with gaps still remaining and Tehran expected to return with additional details in the coming weeks.

Minutes from the Fed’s January meeting showed that nearly all officials agreed to keep interest rates steady last month. However, they remained divided regarding the outlook, with some warning that rates could rise again if inflation stays elevated, while others debated whether and when further rate cuts might be appropriate.

Independent metals trader Tai Wong suggested that gold could potentially revisit US$5,000 per troy ounce despite the slightly hawkish tone of the Fed minutes, as most market participants do not anticipate any interest rate moves before June.

Meanwhile, January consumer price inflation came in weaker than expected, although job growth exceeded forecasts and the unemployment rate declined.

Investors are also awaiting the US personal consumption expenditures (PCE) report due Friday, the Fed’s preferred inflation gauge, for further insight into inflation trends and their potential impact on borrowing costs.

As a non-yielding traditional safe-haven asset, gold typically benefits in a low-interest-rate environment.

Silver prices also rebounded after falling for two straight sessions. On Wednesday (February 18, 2026), silver surged 5.07% to US$77.18 per troy ounce, ending its previous two-day decline.

In Thursday’s trading (February 19, 2026) as of 06:19 WIB, global spot silver prices rose another 0.42% to US$77.5 per troy ounce.