Gold trades near $5,000 as safe haven demand lifts XAU/USD 0.2% despite Fed higher for longer signal

Gold moved back toward the key 5,000 dollar level on Thursday, Feb. 19, 2026. The metal stayed firm even after Federal Reserve minutes showed no rush to cut rates. Rising tension between the United States and Iran kept safe haven buyers active.

Spot gold rose about 0.2% to 4,989 dollars per ounce. US gold futures for April traded near 5,008.60 dollars. The move keeps the 5,000 mark in focus for traders.

Gold price near $5,000 as safe haven demand supports XAU/USD

The 5,000 level is more than just a round number. It often acts as a magnet for price action. When gold trades above it, trend buyers usually step back in. When it slips below, prices can fall into fast sideways moves.

Geopolitical risk is a key driver right now. Markets are watching the rising tension between the US and Iran. Investors fear broader military involvement. That risk is pushing money into safe assets like gold.

At the same time, gold recently posted a 1.24% decline earlier in the week. The drop looked sharper because trading volumes were thin. Lower liquidity can exaggerate moves in either direction.

Federal Reserve minutes signal higher for longer rates

The Federal Reserve January meeting minutes showed a cautious tone. Officials warned that inflation progress could be uneven. Some policymakers remain open to further tightening if price pressures stay high.

This higher for longer rate stance limits gold’s upside. When interest rates and real yields rise, holding non yielding gold becomes less attractive.

The US Dollar Index stayed firm in the high 97 area. A strong dollar also caps gains in gold because it makes bullion more expensive for global buyers.

Markets are now watching US GDP data and the Personal Consumption Expenditures inflation report due Friday. Both reports can quickly move Treasury yields. Any sharp rise in yields could pressure gold below key support.

Key Gold price levels: $4,980 support and $5,025 resistance

Traders are focused on clear price levels instead of lagging indicators.

Support sits in the 4,980 to 4,990 zone. This area has acted as a dip buying range in recent sessions. A break below it increases the chance of a move toward 4,950.

The next downside level stands near 4,950. If yields rise again, this area may test buyer confidence.

On the upside, resistance appears between 5,010 and 5,025. A sustained move above this band could open the door for a broader retest of early February highs.

For now, gold remains in a push pull environment. Safe haven demand tied to geopolitical risk is offering support. Higher yields and a steady dollar are limiting breakout momentum. The battle around 5,000 dollars is likely to define short term direction in XAU/USD.