On the morning of February 25, the gold market witnessed a narrow fluctuation as spot gold traded around $2925 per ounceJust the day before, prices had plunged to a new low of $2888.14, marking a significant drop since February 18. The struggles of gold prices highlighted the impact of profit-taking behaviors from some bullish traders after the metal struggled to reach new heightsThis trend has drawn attention to the ongoing pressures facing gold investments.

As geopolitical risks begin to subside, there is a notable decrease in the demand for gold as a safe-haven assetSuch market dynamics could place further short-term pressure on gold prices, as traders and investors adjust their strategies in light of shifting global sentiments.

Adding complexity to the current gold situation, the Federal Reserve is anticipated to resume interest rate cuts in June, with the possibility of further reductions in short-term borrowing costs by SeptemberThe U.S. dollar index fell by 0.39% to 106.29 on Tuesday, approaching a two-month low of 106.12 reached earlier that weekAdditionally, an investigation into U.S. copper imports was initiated as part of efforts to rejuvenate domestic production, which could lead to new tariffsThis move represents a significant escalation in America’s approach to global trade norms, further enticing safe-haven buying and supporting gold prices amid market uncertaintiesOn Monday, it was reported that tariffs on imported goods from Canada and Mexico are progressing as planned.

As we delve into the technical analysis of gold prices for February 26, a clear trading pattern emergesThe market opened at around $2953, close to the day's high resistance level, signaling caution for investorsThe Asian session saw a slight dip, while European trading maintained a consolidation phase at elevated prices before a significant downturn in the U.S. marketThis culminated in a closing price low of approximately $2888 after a minor rebound, resulting in a distinct bearish daily candlestick formation.

Examining the daily chart, the Bollinger Bands display a contracted state, indicating potential volatility

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The price action followed a high and subsequently retreated, with moving averages (MA5 and MA10) beginning to diverge downward from their high positionsThis pattern, combined with a decreasing MACD energy histogram and a bearish KDJ crossover, suggests that traders should adopt a short-sell strategy at resistance levels while anticipating further declinesA review of shorter time frames reveals a downward-opening Bollinger Band dynamic, with the price action also decliningCurrent moving averages are displaying similar downward movement, as MACD is shifting towards a bearish zone, indicating continuation of the downtrend.

For actionable strategies in trading gold on February 26, the following recommendations can be considered: first, short positions should be initiated near $2926/2928 with a tight stop loss set at a $6.5 risk, targeting lower levels at $2910—$2890—$2850. Second, any testing of the $2950/2952 range could be another opportunity for shorting with the same stop loss and aiming for targets lower downConversely, a buying opportunity may present itself near $2860/2862, justifying a long position if stop losses are appropriately managed at a $6.5 risk.

In parallel, an analysis of the silver market depicts a similar trendOn February 25, silver opened around $32.35 but saw heightened activity leading to a new intraday high of $32.47 before it declined as major European and U.S. markets sold off significantlyThe trading day saw silver drop to a notable support level around $31.27, indicating bearish sentiment.

The daily analysis of silver further reflects a contracted Bollinger Band as the price tested lower support levels, struggling to maintain its earlier highs as moving averages indicated a potential bearish reversalSimilar to gold, the MACD histogram was diminishing, while the KDJ indicator confirmed a death crossTraders should remain cautious, focusing on short-sell opportunities against recent highsAnalysis of shorter time frames suggests that traders can expect continued bearish movement in silver as market dynamics shift.

For silver trading strategies, the following suggestions are advised: a short position can be initiated at $31.85/32, with a stop loss at $32.28 and targets aimed towards $31.35—$30.76. Similarly, any test of the $32.65/32.77 range should warrant shorting with calculated risk parameters in place

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