Gold has shown intense volatility in the first days of February 2026 following a historic rally that drove the metal to an all time high in late January.
All Time High in Late January
Spot gold reached a record peak of $5594.82 per ounce on January 29 2026 fueled by robust safe haven buying central bank acquisitions, geopolitical risks, and shifts away from the US dollar. This capped a strong surge with prices up about 14% year to date building on gains over 64% from the prior year.
Major Correction
The upward momentum reversed sharply with a plunge of nearly 10% in one session on January 30 2026 among the biggest single day declines in over a decade. The pullback continued into early February pushing gold as low as around $4400 per ounce due to profit taking increased market swings and responses to US policy news such as President Trump’s nomination of Kevin Warsh for Federal Reserve chair. This development temporarily bolstered the dollar and weighed on safe haven demand causing notable price erosion.
Rebound Brings Prices Back Near $5000
On February 4 2026 gold staged a solid recovery. Spot prices climbed above the $4900 level trading in ranges such as $4919.02 to $4930.13 per ounce in various reports with futures around $4908.90 per ounce showing small daily moves near $4900 to $4950. This bounce wiped out portions of the recent losses and revived buyer interest as the US Dollar Index softened and core supportive factors endured.
Bullish Long Term Outlook from Analysts
Institutions hold optimistic views for gold despite near term ups and downs. Wells Fargo Investment Institute increased its end of 2026 target to $6100 to $6300 per ounce expecting reduced short term rates and continued central bank purchases. JPMorgan projects $6300 per ounce by year end driven by reserve diversification. Forecasts from UBS and Deutsche Bank suggest levels around $6200 per ounce emphasizing ongoing influences like geopolitical issues and demand for real assets.
Key upcoming signals from the Fed and global events will determine if the current recovery gains traction or faces additional setbacks. The structural case for gold stays strong supported by consistent demand even amid the dramatic price movements of recent weeks and in various markets.