Gold regains the $5,000/ounce mark.

(Dan Tri Newspaper) - Having just experienced a "bloodbath" that caused panic among investors, gold unexpectedly reversed course and surpassed the $5,000/ounce mark. A massive influx of bargain-hunting capital has entered the market, but has the nightmare of the sell-off truly ended?

The financial markets have just witnessed a classic roller coaster ride. In just a few trading sessions, gold plummeted from its historical high only to rebound sharply, leaving many individual investors stunned.

The green color has returned, but the story behind the fluctuating numbers is what's really worth discussing.

After a plunge described as a "historic event," world gold prices have officially reclaimed the $5,000/ounce mark (Photo: Getty).

The race to grab cheap goods.

According to updated data from Bloomberg, gold prices recorded their second consecutive day of gains, officially reclaiming the important psychological threshold of $5,000 per ounce. Specifically, during the trading session on February 4th, the price at one point rose by as much as 2.6%, continuing the strong recovery of over 6% from the previous session.

As of 11:40 AM on February 4th (Vietnam time), the spot gold price was trading around $5,072 per ounce. This bullish sentiment wasn't limited to gold; its "cousin," silver, also recorded a 3.3% increase, reaching $87.99 per ounce. Platinum and palladium also simultaneously turned green.

According to Bloomberg, the main driver of this rebound was the opportunistic "buy the dip" mentality. When gold prices fell by about 10% from their peak (set on January 29), lurking foreign capital immediately entered the market. In addition, the US dollar's slowdown after a series of rapid increases also fueled the recovery.

However, analysts believe the recent crash was an inevitable consequence of the market becoming too crowded. Previously, speculative capital from Chinese funds and Western investors had driven prices up excessively using leverage. When the tide turned, a forced sell-off occurred.

A noteworthy detail is the extremely sensitive sentiment of Asian capital flows. Data from Bloomberg shows that the four largest gold ETFs in China just recorded net outflows of nearly $1 billion in a single day – an unprecedented record, a stark contrast to the frenzied buying spree just a week earlier.

Daniel Ghali, a strategist at TD Securities, believes the forced sell-off may be over, but this volatility will make many retail investors hesitant.

Long-term outlook: Risks or opportunities?

Despite experiencing its deepest decline since 2013, gold prices have still seen an impressive year-to-date increase of approximately 17%. While the current price is about 10% lower than its all-time high on January 29th, it remains a desirable figure for many other asset classes.

Notably, major banks are still placing large bets on precious metals. Deutsche Bank, in an announcement on Monday (February 2nd), affirmed that it maintains its forecast that gold prices could reach $6,000 per ounce. Similarly, Goldman Sachs stated that gold still faces "significant upside risks" and kept its year-end price target at $5,400 per ounce.

Meanwhile, the silver market is experiencing far more erratic movements. Dubbed "steroid-laced gold," silver plummeted 36% before rebounding to the $87-$88 per ounce range. Ewa Manthey, a strategist at ING, explains that the small market size and tight liquidity in London amplify the extreme volatility of silver in both directions.

Following a series of emotionally charged trading sessions, the market appears to be finding its equilibrium. Looking ahead, Niklas Westermark, Head of Commodity Trading for EMEA at BofA, predicts continued high volatility. However, he affirms that gold has a solid long-term investment story.

Short-term fluctuations may affect the size of trading positions, but will not diminish the overall interest of investors in this "safe haven".

Source: https://dantri.com.vn/kinh-doanh/vang-lay-lai-moc-5000-usdounce-20260204133627454.htm