By David Brough
LONDON – Gold recovered ground to stand at above USD $5,000 per ounce in mid-February, with analysts predicting high volatility until it finds a clear direction.
Gold prices rose on February 13, 2026, after a 3 percent sell-off the day before, with buying fuelled by lower-than-expected U.S. inflation in January. Gold was up 2 percent to USD$5,021.80 per ounce.
Analysts noted that the sharp upswing in gold prices, which are almost double what they were a year ago, suggests that volatility in bullion will remain high in the near term.
“I think it’s hard to say with any confidence that the worst of the volatility is behind us,” Michael Brown, senior market analyst at Pepperstone, was quoted as saying by Kitco News.
“I remain of the view that we do need to see a period of consolidation before embarking on the next leg of a run higher.”
Analysts say gold is likely to move higher later this year, due to a climate of falling interest rates in the United States, and expectations of further “safe haven” investor buying due to geopolitical uncertainties.
ANZ analysts have raised their second-quarter forecast for gold prices to USD $5,800 per ounce from USD $5,400.
The latest benign U.S. inflation data has reinforced the view that U.S. rates will fall further this year.
Some analysts say that the gold market may ease in the third week of February due to the absence of Chinese buyers because of Lunar New Year celebrations.
