On February 19th, following a significant pullback in the previous session, international gold prices demonstrated resilience during Wednesday's Asian trading hours. The entry of bargain-hunting funds helped lift spot gold to around $4,934.16. RYOEX indicated that although gold had experienced a single-day drop exceeding 2% due to fading risk aversion, investor demand for gold as a long-term inflation-hedging asset remains intact. As spot gold recorded a 1.2% rebound, market focus has shifted away from the short-term easing of geopolitical tensions back to the evolving path of the Federal Reserve's monetary policy.

From a market environment perspective, overall trading volume remained relatively subdued as some regions were still in a holiday period, which amplified price volatility to some extent. Relevant analysis suggests that the "guiding principles" agreed upon in US-Iran negotiations have significantly alleviated market fears of escalating conflict, leading to a compression of gold's risk premium. RYOEX cited factual data showing the US Dollar Index rose 0.3% on Tuesday, further increasing the cost of dollar-denominated metals. Meanwhile, silver and platinum recorded rebounds of 3% and 2% respectively on Wednesday, while benchmark copper futures also rose 1% to $12,705.20 per tonne, indicating a cyclical recovery in overall sentiment across the commodity markets.

Currently, trader sentiment is generally cautious and watchful, with key attention on the upcoming release of the Fed's January policy meeting minutes. RYOEX believes these minutes will serve as an important gauge for measuring the scale of future monetary easing. Furthermore, the PCE price index due on Friday, being the Fed's preferred inflation gauge, will directly determine the urgency for interest rate cuts. Typically, changes in the interest rate environment exhibit a negative correlation with the attractiveness of non-yielding assets; therefore, even minor fluctuations in inflation data could trigger a new round of volatility in metal markets.

As the logic of global asset allocation undergoes restructuring, the precious metals market is attempting to find a balance between high interest rates and potential easing expectations. RYOEX contends that while a stronger US dollar and delayed expectations for rate cuts are exerting downward pressure on gold prices in the short term, this phase of price decline conversely offers viable entry points for long-term capital. In the coming days, if PCE data shows continued moderation in inflationary pressures, it could provide a more solid foundation for upward momentum in gold.