Gold and silver rebound; Israel reportedly prepares for the possibility of "breakdown in US-Iran negotiations"

On February 18, international gold and silver prices opened lower today but then surged strongly. As of the time of writing, spot gold prices increased by 1.23% intraday to $4,936.6 per ounce. Spot silver prices rose over 3% intraday to $75.995 per ounce.

However, on February 18, Oriental Fortune Information showed that several domestic gold jewelry brands announced that their pure gold jewelry prices fell below 1,500 yuan, with Chow Tai Fook, Chow Sang Sang, and Chao Hong Ji quoting 1,499 yuan per gram. Luk Fook Jewelry, Lao Miao Gold, Chow Sheng Sheng, Lao Feng Xiang, and Caibai still maintained prices around 1,500 yuan, with quotes of 1,527 yuan, 1,516 yuan, 1,500 yuan, 1,510 yuan, and 1,502 yuan respectively.

In terms of news, according to CCTV News, citing Israeli sources on the 17th, Israel is preparing for the possibility of the US-Iran negotiations breaking down.

It is reported that Israel believes the US-Iran negotiations have entered a “critical stage,” and due to significant differences between the US and Iran, Israel is preparing for the possibility of negotiations collapsing. Israel believes that once the US gives the green light to strike Iran, it will have to stand shoulder to shoulder with the US.

On the 17th, Israeli officials also stated that the current results of the US-Iran negotiations are “not as encouraging as publicly claimed.” According to Israeli assessments, although some progress has been made on nuclear issues, Iran refuses to discuss its ballistic missile program and support for “regional proxies.”

The second round of indirect talks between the US and Iran was held in Geneva, Switzerland, on the 17th. After the negotiations, both US and Iranian officials stated that despite remaining differences, progress had been made compared to the previous round, and both sides agreed to continue discussions.

Regarding future Federal Reserve rate cuts, several Fed officials have made new statements.

Fed Chair Powell said that before reaching a neutral rate, the Fed has about 75 basis points of room; inflation needs to be lowered; apart from healthcare and education, most sectors of the US economy face unemployment, and it is necessary to ensure that labor market vulnerabilities do not turn into substantial weakness.

Fed Governor Barr stated that recent data indicates the labor market is stabilizing, and the outlook suggests the Fed will keep interest rates unchanged for a period. He still sees “significant risks” that inflation will remain above 2%; before further rate cuts, evidence is needed that commodity price inflation is continuing to decline. He also mentioned that the AI boom is unlikely to lead the Fed to cut rates, and in the long run, AI should improve productivity and living standards.

(Source: Daily Economic News)