Gold and silver prices saw a decline today as global markets reacted to significant political and economic shifts. German stock futures and the euro edged higher following the victory of Friedrich Merz, Germany’s conservative opposition leader, while geopolitical uncertainty surrounding Ukraine and concerns over the U.S. economy contributed to market volatility.
Meanwhile, in an unexpected statement, Ukraine’s President Volodymyr Zelenskiy expressed his willingness to step down if it guaranteed peace and Ukraine’s NATO membership. The remark comes just a day before the third anniversary of Russia’s full-scale invasion, underscoring the persistent geopolitical tensions impacting investor sentiment.
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Germany’s Political Shift: Merz’s Victory and Market Response
Germany’s political landscape witnessed a major shake-up after the CDU/CSU bloc, led by Friedrich Merz, secured a 28.6% share of the votes in the federal election. The far-right Alternative for Germany (AfD) followed with 20.8%, while Chancellor Olaf Scholz’s Social Democrats (SPD) suffered their worst defeat since World War II, with just 16.4% of the vote.
Merz has pledged to swiftly form a coalition government, a move that has boosted investor confidence, pushing the euro higher and lifting German stock futures. Markets are now watching how his policies will shape Germany’s economic outlook, particularly regarding the European Central Bank’s (ECB) stance on interest rates and fiscal stimulus.
China’s “2025 Action Plan” on Foreign Investment
Adding to the global economic landscape, China unveiled a “2025 Action Plan for Stabilizing Foreign Investment” aimed at improving access for foreign capital in sectors such as telecommunications and biotechnology.
The move has been met with cautious optimism. Jens Eskelund, President of the European Union Chamber of Commerce in China, stated that businesses are eager to see whether the reforms bring tangible benefits. If implemented effectively, this could boost investor confidence in Chinese markets, indirectly impacting demand for commodities like gold and silver.
Gold and Silver Market Performance: Weakness Amid Volatility
On Friday, precious metals settled lower in global markets amid profit-taking and shifting risk sentiment.The drop in precious metal prices came despite ongoing global uncertainties, including weak U.S. economic data, a declining dollar index, and softening U.S. bond yields. old prices had previously gained for eight consecutive weeks, driven by expectations of an interest rate cut by the U.S. Federal Reserve and concerns over new tariffs imposed by former U.S. President Donald Trump.
However, last week, investors saw significant profit-taking following the release of weaker-than-expected U.S. economic data, particularly in the services and manufacturing sectors.
Market Outlook and Key Price Levels
Manoj Kumar Jain, Director at Prithvi Finmart, believes that gold and silver could hold their key support levels in the coming sessions amid global financial market uncertainty. He suggests that gold and silver may remain volatile this week, influenced by the U.S. dollar index movements, ongoing trade war concerns, and global central bank policies.
Key Support and Resistance Levels:
Gold Support: $2,934–$2,922 | Resistance: $2,970–$2,988 per troy ounce
Silver Support: $32.80–$32.40 | Resistance: $33.30–$33.64 per troy ounce
MCX Gold & Silver Levels (India):
Gold Support: ₹85,770–₹85,440 | Resistance: ₹86,360–₹86,650
Silver Support: ₹95,500–₹94,750 | Resistance: ₹96,850–₹97,400
Jain recommends that traders wait for stability before making fresh entries in the bullion markets, as ongoing economic and geopolitical developments continue to drive volatility.
Key Economic Events for the Week (February 24 – 28, 2025)
The upcoming week features a series of key economic data releases from the U.S. that could influence gold and silver prices.
Monday, February 24, 2025
03:30 PM – EA Inflation Rate YoY Final JAN
09:00 PM – US Dallas Fed Manufacturing Index FEB
Tuesday, February 25, 2025
08:30 PM – US CB Consumer Confidence FEB
10:15 PM – US Fed Barr Speech
Wednesday, February 26, 2025
07:00 PM – US Fed Barkin Speech
08:30 PM – US New Home Sales JAN
Thursday, February 27, 2025
07:00 PM – US GDP Growth Rate QoQ 2nd Est Q4
07:00 PM – US Initial Jobless Claims FEB/22
07:00 PM – US Core PCE Prices QoQ 2nd Est Q4
08:30 PM – US Fed Barr Speech
Friday, February 28, 2025
01:45 AM – US Fed Harker Speech
07:00 PM – US Core PCE Price Index MoM
07:00 PM – US Personal Income MoM JAN
07:00 PM – US PCE Price Index MoM JAN
The U.S. Core PCE Price Index, the Federal Reserve’s preferred measure of inflation, will be closely watched by investors for hints on future interest rate policy. A higher-than-expected reading could dampen expectations for an early rate cut, potentially weighing on gold and silver prices.
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Disclaimer:
The information provided in this article is for informational purposes only and reflects the views of industry experts. Before making any investment decisions, it is recommended that you consult a financial advisor. The team at Gold Price Today does not engage in personal buying, selling, or trading of gold or silver on exchanges. We are not responsible for any gains or losses incurred based on the information presented here
