Editor’s Note
This article cites analyst predictions from the Observer Voice regarding gold price movements. While a short-term dip is forecast, the medium-term outlook is bullish, with some projections reaching $6,000/oz in Q2. These views reflect broader market uncertainty but remain speculative. Investors should conduct their own research.
The Indian online news site Observer Voice reported that analysts predict a short-term price adjustment to $4,790-$4,750 per ounce. However, the medium-term outlook for gold prices over the next 1-2 months remains bright. Reflecting continued global economic uncertainty, it is also suggested that gold prices could reach $6,000 per ounce in the second quarter.
The Indian online news site Observer Voice quoted Mr. Manish Sharma, Vice President of Commodities & Currencies at Anand Rathi Shares and Stock Brokers, stating that gold prices are predicted to maintain a long-term upward trend.
Gold prices ended last week with a slight increase, supported by mixed signals from US economic data.
The Consumer Price Index (CPI) for January 2026 rose 2.4% year-on-year, down from 2.7% in December 2025 and below the forecast of 2.5%. The monthly inflation rate also decreased from 0.3% to 0.2%.
These figures support expectations that the Federal Reserve (Fed) may consider interest rate cuts later this year.
However, the labor market remained stable with a significant increase in non-farm payrolls and an unexpected drop in the unemployment rate.
This complex economic situation limits the upside potential for gold prices, especially as demand fluctuates from key markets like India and China.
In recent months, due to a surge in demand for precious metals, authorities in Shenzhen, a major retail hub in China, have issued warnings about illegal gold trading activities.
These activities include applications offering leverage to individual investors and online promotions for selling gold bars.
This week, sentiment in the precious metals market is subdued due to the impact of Chinese holidays and investor profit-taking.
Currently, spot gold prices are trading around $4,937 per ounce and are expected to stabilize within a narrow range.
Analysts predict that in the short term, prices could adjust to the range of $4,790-$4,750 per ounce.
Similarly, spot silver prices are currently around $74.75 per ounce but could fall to $68-$70 per ounce within the next 1-2 weeks.
Recent sideways trading is mainly due to low liquidity, particularly as many Asian markets are closed for holidays.
Profit-taking following the 2.5% price increase on February 13th is also contributing to the current volatility.
This week’s market movements are expected to be influenced by the extended holiday period in China and other Asian markets, as well as expectations for future interest rate adjustments.
Furthermore, fluctuations in Asian currencies like the Japanese Yen could also affect market sentiment unless the Bank of Japan adopts a more hawkish monetary policy.
Traders are closely watching geopolitical developments, such as the resumption of US-Iran nuclear talks and US-led efforts towards resolving the conflict between the Russian Federation and Ukraine.
These factors could significantly impact market risk appetite and flows into safe-haven assets.
Key US macroeconomic indicators, including GDP data and the Personal Consumption Expenditures (PCE) index, are also expected to play a crucial role in influencing gold prices in the short term.
In the medium term, the outlook for gold prices over the next 1-2 months remains positive.
Analysts believe the fundamental drivers of the multi-year bull market, such as geopolitical tensions and a shift away from traditional assets like currencies and government bonds, will continue to support gold’s upward momentum.
According to forecasts, gold prices could reach $6,000 per ounce in the second quarter, as uncertainty about the global economic outlook persists.