Gold Rises Over 1% Following US Economic Data and New Tariff Announcements
Market Brief: Gold and Global Trade Volatility
**February 21, 2026**
Gold markets are experiencing a sharp resurgence as a collision of weak economic data and renewed trade friction resets investor expectations. Spot gold is currently trading near **$5,025 per ounce**, maintaining a hold above the critical **$5,000** psychological threshold.
In domestic markets, prices have climbed to approximately **₹1,57,520 per 10 grams**, reflecting a gain of over **₹800** from the previous session. This rally follows a volatile week where the metal recovered nearly **₹300 per gram** from recent lows.
GDP Stagnation and Inflationary Pressure
Fresh data shows U.S. economic growth slowed significantly to an annualized rate of **1.4%** in the final quarter of last year. This figure fell sharply below the **3%** growth projected by economists.
A record **43-day government shutdown** and a notable cooling in consumer spending are cited as primary drivers of this deceleration. Despite the slowdown, the Federal Reserve's preferred inflation gauge, the PCE index, rose **0.4%** in December. This combination of sluggish growth and persistent price increases has intensified "stagflation" concerns, historically a strong environment for precious metals.
The Tariff Tug-of-War
Trade policy has emerged as a primary source of market turbulence. While the U.S. Supreme Court recently struck down a broad set of global tariffs—ruling that the administration exceeded its executive authority—the reprieve for markets was short-lived.
Immediately following the ruling, the administration announced a new **10% global tariff** on all imports, leveraging alternative statutory powers. While the court decision provided a temporary boost to equities, the swift pivot to new protectionist measures has fueled a "safe-haven" rotation back into gold.
Technical Outlook and Silver Performance
Analysts note that gold has formed a potential "double-bottom" technical pattern, with strong support holding at the **$4,880** level. Immediate resistance is now pegged between **$5,100 and $5,120**.
The broader metals complex is following gold's lead:
* **Silver** surged **3.4%** to reach **$81.02 per ounce**.
* **Platinum** gained **2.8%**, currently trading at **$2,127**.
* **Palladium** rose **2%** to reach **$1,718**.
Geopolitical tensions and a steady trend of central bank diversification continue to provide a structural floor for prices. Market participants are now pricing in a high probability of at least two interest rate cuts this year, with the first anticipated in **June 2026**.