Gold Slips 1.36% to $4,977 per Ounce; Analysts See Volatile, Range-Bound Trend
Gold prices declined 1.36 per cent to $4,977 per ounce on Monday, as subdued global trading conditions kept price action largely contained. Much of Asia remained closed for the Lunar New Year, while US markets were shut for a holiday.Despite the dip, bullion continued to hover near the $5,000 mark, indicating sustained investor participation after a period of heightened volatility.
Gold Stabilizes Near $5,000 After Sharp Swings
Spot gold was little changed at $4,990.08 an ounce as of 7:45 a.m. in Singapore, following a 1 per cent fall in the previous session.The metal had surged to a record above $5,595 per ounce in late January amid a wave of speculative buying that pushed a multiyear rally to extremes. However, an abrupt two day correction at the start of the month dragged prices close to $4,400. Since then, gold has recovered roughly half of those losses, underscoring ongoing volatility.
In the domestic market, analysts project the near term trend to remain volatile, with prices likely to stay range bound between Rs 1,52,000 and Rs 1,57,000 over the next few sessions.
Inflation Data and Fed Outlook Drive Sentiment
Gold had briefly rallied on Friday after modest US inflation data strengthened expectations that the Federal Reserve may trim interest rates. Lower borrowing costs typically support non yielding assets such as gold by reducing the opportunity cost of holding them.However, near term direction remains dependent on macroeconomic cues and global liquidity conditions.
Global Banks Maintain Bullish Medium to Long Term View
Several major global financial institutions, including BNP Paribas SA, Deutsche Bank AG and Goldman Sachs Group Inc., have indicated that gold prices could resume their upward trajectory.Analysts at Jefferies, including Fahad Tariq, cited inflation and dollar debasement as two key macro factors supporting gold. The firm raised its 2026 gold price forecast to $5,000 per ounce from $4,200 earlier.
According to their note, investors and central banks concerned about inflation and currency risks increasingly prefer allocations to hard assets.
Other Precious Metals Mixed; Dollar Flat
In the broader precious metals market, silver slipped 0.1 per cent to $76.58 per ounce. Platinum edged lower, while palladium rose 0.4 per cent.The Bloomberg Dollar Spot Index was flat after ending the previous session 0.1 per cent higher, reflecting a steady US currency backdrop.
Investment Perspective
With gold consolidating near $5,000 after sharp corrections and partial recovery, the near term outlook remains volatile but technically range bound. At the same time, medium to long term projections from major banks continue to reflect structural support driven by inflation concerns, currency dynamics and geopolitical uncertainty.Investors may evaluate short term price swings within the broader macro framework shaping gold’s trajectory.
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