Gold fell after a two-day gain, as investors took profits in a choppy market that\u2019s still trying to find clear direction following a historic rout. Silver also dropped.<\/p>\n
Spot gold lost as much as 1.4%, before paring losses to trade slightly above $5 000 an ounce. Traders are looking to US data due this week for clues on the Federal Reserve\u2019s policy direction. While bullion has declined about 10% since hitting an all-time peak on January 29, it\u2019s still firmly higher this year.<\/p>\n
The move \u201cpoints to profit-taking and position trimming, rather than a renewed rush for the exit,\u201d said Hebe Chen, an analyst at Vantage Markets in Melbourne. \u201cCrucially, gold is holding above the $5 000-an-ounce level despite the recent rout \u2014 a psychological zone poised to serve as a key technical hurdle for sellers, even as buyers remain cautious after the volatility.\u201d<\/p>\n
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Precious metals plummeted at the end of January, when a record-setting surge fuelled by speculative trading caused markets to overheat. However, many of the factors that had underpinned a multiyear rally \u2013 heightened geopolitical risks, elevated central-bank buying, and investor flight from sovereign bonds and currencies \u2013 remain in play.<\/p>\n
Many banks and asset managers, including Deutsche Bank AG and Goldman Sachs Group, have backed bullion to recover due to these long-term demand drivers. Underscoring resilient official demand, the Chinese central bank extended its gold buying to a 15th month in January.<\/p>\n
\u201cThe flush-out was a much-needed reset for gold prices to resume their gradual trend higher,\u201d said Christopher Wong, a strategist at Oversea-Chinese Banking Corp. \u201cThe structural drivers underpinning gold remain intact. Downside momentum has moderated, and gold has begun to find slightly firmer footing at lower \u2014 but still historically elevated \u2014 levels,\u201d he said.<\/p>\n
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Looking ahead, the data due later this week will offer clues on Fed policy after President Donald Trump nominated Kevin Warsh to become the next head of the US central bank. The January jobs report on Wednesday is expected to show signs of the labour market stabilising, and inflation data is scheduled for Friday.<\/p>\n
Spot gold declined 0.7% to $5 024.74 an ounce at 11:47 a.m. in Singapore. Silver fell 2.4% to $81.43. Platinum and palladium also traded lower. The Bloomberg Dollar Spot Index, a gauge of the US currency, was down 0.1% after ending the previous session 0.6% lower.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
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