Gold Reclaims $5,000 — But Analysts Say Volatility Isn’t Over 🟡
Gold has pushed back above the $5,000/oz psychological level, but analysts warn the market is still unstable after this week’s sharp swings.
After a calm start near key levels ($5,000 gold / $80 silver), both metals were hit hard on Thursday:
$XAU Gold: −3%
$XAG Silver: −10%+
“This was a very peculiar move with no obvious catalyst,” said Michael Brown of Pepperstone, adding that a period of consolidation is likely before the next sustained move higher.
📊 Inflation Data Fuels Rebound
Gold rebounded after cooler U.S. inflation data:
January CPI: 2.4% YoY, below expectations (2.5%)
Source: U.S. Bureau of Labor Statistics
Spot prices:
Gold: $5,021.80 (+2% day, +1% week)
Silver: $77.46 (+3% day, flat week)
Lower inflation supports expectations for future Fed rate cuts, though the CME FedWatch Tool suggests no move until June.
🔍 Key Levels to Watch
According to Lukman Otunuga of FXTM:
Above $5,000: Opens path to $5,050 → $5,100
Below $5,000: Risk of pullback toward $4,900
Sentiment remains fragile after late-January selloff
⚠️ Additional Headwinds
Equity weakness as the S&P 500 struggles near 7,000
Gold’s liquidity means it can be sold to meet margin calls
China’s Lunar New Year market closure next week may reduce demand
Barbara Lambrecht of Commerzbank expects quiet consolidation during the holiday period.
Bottom line: Gold is back above $5,000, but volatility, macro uncertainty, and thin liquidity risks suggest the market still needs time to stabilize.
#GOLD_UPDATE #Silver #MarketRebound #CPIWatch #Write2Earn