Gold fell below $5,000 on Monday as traders booked profits after a sharp late-week rally, leaving the spot price near $4,985 per ounce today and down about 1 percent. The move followed softer U.S. inflation data and a 2.4 percent jump on Friday, and MCX April gold at ₹154,800 traded about $1,890, down 0.7 percent.
January U.S. CPI rose 0.2 percent, easing rate-cut fears and fueling the prior rally, while thin Asian trading worsened the drop (Ed. note: China markets are closed for Lunar New Year through Feb. 23). This thinner liquidity helped prompt rapid profit-taking after Friday’s surge.
Hebi Chen of Vantage Markets said “With China and parts of the broader Asian market on holiday, gold is likely to see weaker liquidity and a calmer tone in trading at the start of the week.” He voiced caution about trading conditions.
At the time of writing, spot gold was changing hands at $4,992, ETF holdings stood at 100.13 million ounces, and COMEX registered inventory was 17.57 million ounces. These levels suggest major investors remain active despite recent volatility.
Several banks remain upbeat, with ANZ Group Holdings forecasting $5,800 per ounce in Q2 2026, and buyers in Dubai and India moved in on the dip ahead of Eid demand. Dubai’s 24K price fell to AED 598.50, about $163 per gram.
Markets remain split after gold rallied above $5,595 in late January then briefly fell below $4,500. Chen added “Structurally, the metal continues to show resilience, the macroeconomic backdrop has been strong but not disruptive, and technical support remains in place.”
