Gold reclaims the $5,000 mark, silver rebounds over 20% from lows, institutions optimistic about challenging higher prices

Spot gold re-claimed the $5,000 level on the morning of February 4th, and silver rebounded over 20% from its lowest point on Monday. Market buying on dips remains strong.
(Background: Bridgewater’s Dalio warns: The world is on the “edge” of a capital war! Gold remains the best safe-haven asset)
(Additional context: Citibank warns: Gold is overvalued and has entered an extreme zone, with potential for a 50% correction in gold prices)

Today (4th), around 8 a.m., spot gold prices re-approached the $5,000/ounce mark, reaching a high of $5,046 before press time. This rebound has already gained nearly 15% from the low of $4,405 on Monday, indicating that market buying on dips remains robust.

The current U.S. government fiscal situation, ongoing global central bank gold purchases, and geopolitical risks (such as the Iran situation) are the core drivers supporting gold prices. Goldman Sachs estimates that global central banks are purchasing about 60 tons of gold per month.

Silver, which had a decline of up to 40% a few days ago, has also rebounded, with over 20% recovery from its Monday low. Before press time, it was trading at $87.4/ounce.

Institutional Outlook: Challenging Higher Prices by Year-End

After the recent sharp decline, many institutions remain optimistic about gold’s future prospects. UBS predicts that by the end of 2026, gold could reach $6,200, with an optimistic scenario possibly hitting $7,200; Bank of America previously forecast that gold could challenge $6,000 in spring.

On the technical side, gold is currently approaching the next resistance level at $5,110. Whether it can break through remains to be seen. Amid the “short-term policy headwinds” and “long-term fiscal concerns,” sharp fluctuations in gold prices may become the norm. Investors should be cautious of risks and changes in inflation data.

Gold: The Top Safe-Haven Investment

Bridgewater founder Ray Dalio recently addressed global geopolitical risks and market volatility, advising investors to include gold in their asset allocation. He stated that gold provides good diversification for investment portfolios, performing well during market downturns and remaining relatively stable during economic booms. Dalio explicitly said:

Gold has risen about 65% since last year, and has fallen roughly 16% from its high. Investors should not only focus on short-term gains or losses but also consider how much gold to hold in their portfolios to diversify risk.

He emphasized that the most important thing is to build a well-diversified investment portfolio to cope with global uncertainties and potential capital war risks.