Gold rate today: Can gold prices touch $6,000/oz soon? Experts weigh in

Gold rate today: From a new record-high to a sudden crash — gold prices have witnessed a rollercoaster ride in the last two weeks. The safe-haven asset has been facing high volatility amid a tussle between the bulls and bears.

Even as the yellow metal faces a short-term pullback, market experts believe the long-term trend is intact for gold.

“These swings will stop shortly, and the yellow metal will return to its long-term growth trend. In the end, what we are seeing in the market now is a normal pullback of 5-10%, a typical pause before a new jump. The economy is not perfect, but the production signals demand for most of the metals,” said Alex Tsepaev, Chief Strategy Officer of B2PRIME Group.

On Wednesday, spot gold prices climbed nearly 1% to $5,080.89 per ounce, after ending in the red on Tuesday. The precious metal is still 10% away from its record high of $5,608.35 reached on January 29.

What's influencing gold prices?

The precious metal closed January with a 9% rise despite the crash seen towards the end of the month. The gains build on the massive 72% surge seen in the bullion last year.

Gold's bull run has been driven by safe-haven demand amid geopolitical tensions, concerns over the Federal Reserve’s independence, and a move away from conventional assets such as currencies and government bonds.

However, intense speculative buying overheated the rally, leading to a sharp 13% decline between January 30 and February 2. Since then, gold has recovered roughly half of those losses and has been hovering near $5,000 an ounce.

According to Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities, gold’s strength is being driven by both structural and cyclical forces.

Banerjee explained that the world has been moving away from a single-currency reserve system since the 2008 financial crisis, with emerging-market central banks accumulating gold while developed-market central banks have stopped selling.

“At the same time, Western institutional and retail portfolios remain significantly underweight gold, which creates a powerful allocation-driven demand story over the next few years. Cyclically, rising consumer credit stress in the U.S., combined with the likelihood of easier monetary policy and continued fiscal deficits, is supportive for gold,” Banerjee added.

Gold prices to touch $6,000 soon?

Aamir Makda, Commodity & Currency Analyst, Choice Broking, believes that the idea that gold will reach $6000 per ounce is not a fringe theory. The path to $6,000 will be supported by a mix of structural shifts and macroeconomic pressures, he believes.

Makda further said that while the outlook for gold prices is positive, reaching $6,000 is not assured. “Factors that could put pressure on prices include: the conclusion of geopolitical conflicts, such as Russia-Ukraine or those in the Middle East, which would eliminate the geopolitical risk premium; a strong rebound of the US dollar, making gold more expensive for international buyers; and last but not the least increased margin requirements on gold futures by exchanges like CME, potentially leading to liquidations and short-term price declines,” he said.

On the other hand, Banerjee of Kotak Securities expects gold to move to the $6,000 level in 2026.

“Over the next six months, volatility may persist, but the medium-term bias remains constructive, and we believe gold could move beyond the $6,000 level in 2026, driven by dollar debasement,” Banerjee added.

Investors who have entered the market this year are highly likely to see new peaks and an approach to $6,000 for gold and $100 for silver in the near future, opined Tsepaev.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.