Precious Metals Market Update: 2/16/2026

Trading activity in the precious metals complex was notably subdued on Monday, February 16th, 2026, as market closures in the United States (Presidents' Day) and China (Lunar New Year) drained liquidity from the global system. In the absence of major U.S. participants, Gold experienced mild profit-taking, sliding approximately 0.8% to hover just above the $5,000 support level. The yellow metal's pullback reflects a consolidation of last week's gains rather than a shift in sentiment, with low volumes exacerbating minor price moves.

Silver displayed resilience in the thin market, ending the session essentially flat with a slight positive bias. While gold retreated, silver held its ground near $77.43, outperforming its monetary counterpart on a relative basis. The standout performer of the day was once again Palladium, which surged nearly 3.6% to approach $1,750. The metal continued its violent recovery from last week's lows, driven by persistent short-covering and speculative buying that faced little resistance in the illiquid environment. Platinum drifted lower in sympathy with gold, shedding roughly 0.5%.

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Key Drivers:

• Holiday-Thinned Liquidity: The defining characteristic of Monday’s session was the lack of volume due to the U.S. Presidents' Day holiday and the ongoing Lunar New Year celebrations in China. With two of the world's largest commodities markets offline, price action was choppy and driven by lower-tier flows. This thin liquidity environment allowed for outsized moves in markets like palladium, while dampening broader momentum in gold.

• Profit-Taking in Gold: After reclaiming the $5,000 level late last week, gold bars faced modest selling pressure from European and Asian traders booking profits. The slight strengthening of the U.S. Dollar Index (DXY) in overnight trading provided a mild headwind, encouraging some desks to trim long exposure while U.S. markets were closed.

• Palladium Momentum: Palladium’s 3.58% rally marked a continuation of the aggressive buying seen on Friday. The metal appears to be benefiting from a dedicated "short squeeze" narrative. In the absence of heavy institutional selling by U.S. industrial players, speculative buyers pushed prices significantly higher on relatively light volume.

Looking Ahead:

Market participants are preparing for the return of full liquidity on Tuesday and key central bank insights later in the week.

• Return of US Markets: Normal trading hours resume on Tuesday. Traders will be watching to see if U.S. investors validate today’s palladium rally or use the higher prices to sell. The return of volume will likely clarify the true direction for silver coins and gold.

• FOMC Minutes (Wednesday): The release of the minutes from the Federal Reserve’s latest meeting is scheduled for Wednesday. Investors will scour the text for details on the rigorous debate over rate cuts, which could be the next major catalyst for the precious metals complex.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Market data and prices are subject to change.