Gold and Silver Stage Deep V-Shaped Reversal, Market Closely Watches Global Central Bank Officials’ Remarks and Geopolitical Risks

TradingKey - During the Asian trading session, gold and silver prices staged a deep V-shaped reversal.

Earlier, Bloomberg reported that the Bank of Japan is inclined to maintain interest rates at its March policy meeting, while not ruling out a potential rate hike in April. Gold prices briefly turned lower intraday on the news.

Subsequently, ECB Governing Council member Villeroy stated that energy prices and markets are being closely monitored, noting that the duration of the war with Iran will determine the extent of the impact on prices, though he currently sees no reason for the ECB to raise rates.

Morgan Stanley expects the European Central Bank to resume rate cuts in 2027, with two 25-basis-point cuts occurring in June and September, respectively.

Central banks from several nations have voiced that despite the surge in oil prices triggered by the Middle East situation, there is no evidence yet of a spike in inflation; therefore, interest rate adjustments should remain data-dependent.

Furthermore, the sharp escalation of the U.S.-Iran conflict continues to bolster the appeal of safe-haven assets, following the sinking of an Iranian warship by a U.S. submarine in the Indian Ocean. This marks the first time since World War II that the U.S. Navy has sunk an enemy warship in active combat.