Gold and Silver Stage Deep V-Shaped Reversal as Market Closely Watches Global Central Bank Speeches and Geopolitical Risks

TradingKey - Gold and silver prices saw a deep V-shaped reversal during the Asian trading session.

Earlier, Bloomberg reported that the Bank of Japan is leaning toward maintaining interest rates at its March policy meeting, but has not ruled out the possibility of a rate hike in April. Influenced by this news, gold prices briefly turned lower during intraday trading.

Subsequently, ECB Governing Council member François Villeroy de Galhau stated that energy prices and markets are being closely monitored, and while the duration of the war with Iran will determine the extent of the impact on prices, there is currently no justification for the ECB to raise interest rates.

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

Several central banks have stated that despite the surge in oil prices caused by the Middle East situation, there is currently no sign of a corresponding inflation spike, and interest rate adjustments should be based on data.

Furthermore, the dramatic expansion of the U.S.-Iran war continues to drive the appeal of safe-haven assets, following reports that a U.S. Navy submarine sank an Iranian warship in the Indian Ocean. This marks the first time the U.S. Navy has sunk an enemy warship in combat since World War II.