Gold prices are staying close to the important $5,000 level as global trading activity slows down during the Lunar New Year holiday period. Lower participation from major Asian markets has reduced volatility, keeping prices in a narrow range.
Investors are watching carefully, but with many traders on holiday, strong price moves are limited for now.
- Chinese Gold Buying Frenzy Triggers Retail Hub Crackdown After Major Scandals
- India Gold ETF Flows Beat Equity Funds as High Prices Attract Investors | Gold ETF News
- Best Crypto Exchange for Successful Trading in 2026 | Secure & Low Fees
- Fixed Deposit New Rules 2026: When Your FD Will Be Reported to Income Tax Department
- Bullion ETFs Become Top Picks in Broker Funding Books Amid Rising Gold Demand
“The market remains in a phase of rebalancing between bulls and bears, lacking clear catalysts to break the range,” Dilin Wu, a strategist at Pepperstone Group Ltd., said in a note. “At $5,100, multiple attempts to push higher failed, as profit-taking at the top generated selling pressure,”.
With markets in China closed this week for the Lunar New Year holiday, liquidity is thinner than usual during Asian trading hours.
Retail demand for precious metals in the country has been frenetic in recent months, prompting authorities in the retail hub of Shenzhen to issue a stark warning against “illegal gold-trading activities,” ranging from apps offering leverage to retail investors to online live streams promoting bullion sales.
The silver market in China meanwhile, continues to be exceptionally tight, although it has begun to show some signs of easing in recent days. Inventories on the Shanghai Gold Exchange and the Shanghai Futures Exchange are at historic lows, while prices for silver futures close to delivery are well above contracts for later in the year, an unusual reversal of a normally upward sloping futures curve.
There are “tentative indications that speculative intensity is moderating” on the Shanghai Futures Exchange, Marc Loeffert, a trader at Heraeus Precious Metals, wrote in a note Monday. Tweaks to exchange rules that will limit the pace of inventory outflows should ease domestic tightness, he added.
The rapid rally in silver has cut into the use of the metal in solar panels, which has been “one of the main sources of industrial demand growth over the last 10 years,” Loeffert wrote, as manufacturers look to replace or reduce the expensive input. That means prices will “be even more exposed to investor sentiment and investment flows,” over the medium term, he said.
Spot gold fell 0.9% to $4,996.55 an ounce as of 12:18 p.m. in London. Silver dropped 0.9% to $76.73 an ounce. Platinum fell, and palladium edged higher. The Bloomberg Dollar Spot Index, a gauge of the US currency, rose 0.1%.
Why Gold Is Moving Slowly
During the Lunar New Year celebrations, many Asian financial markets operate with reduced hours or remain closed. As a result:
- Trading volumes drop
- Big institutional moves reduce
- Price swings become smaller
This temporary slowdown has helped gold remain stable near the psychological $5,000 mark instead of showing sharp moves.
Key Support and Resistance Levels
Market analysts say:
- Immediate support is seen near recent weekly lows
- Strong resistance remains just above the $5,000 level
- A clear breakout needs higher global participation
Until normal trading resumes, gold may continue to move within a limited range.
What Is Supporting Gold Prices?
Even though trade is muted, gold continues to find support because:
- Investors still see gold as a safe-haven asset
- Global economic uncertainty remains
- Central bank buying interest is steady
- Inflation concerns are not fully over
These factors are preventing gold from falling sharply.
What Could Trigger the Next Big Move?
Once the Lunar New Year holidays end and full trading resumes, the market may see:
- Higher volatility
- Stronger institutional participation
- Reaction to global economic data
- Possible breakout above or below $5,000
If gold closes strongly above the resistance level with good volume, the next upward targets may open. However, a breakdown below support could invite profit booking.
Short-Term Outlook
For now, gold looks stable but slightly cautious. Traders may prefer to wait for confirmation before taking big positions. Low liquidity periods often create false breakouts, so risk management is very important.
Long-term investors still see strength in gold due to macroeconomic uncertainties.
Conclusion
Gold holding near $5,000 during the Lunar New Year holiday shows stability in the market. Reduced trading activity is keeping prices calm, but once global markets return to full participation, a bigger move could happen. Traders should stay alert and watch volume carefully.
FAQs
1. Why is gold trading slowly near $5,000?
Gold is trading slowly because Lunar New Year holidays have reduced global market participation and liquidity.
2. Is $5,000 an important level for gold?
Yes, $5,000 is a psychological resistance level. A strong close above it may trigger fresh buying.
3. Can gold fall below $5,000 soon?
It depends on global market conditions and economic data after full trading resumes.
4. Is this a good time to invest in gold?
Short-term traders should wait for confirmation, while long-term investors may look at dips as opportunities based on their strategy.
5. What will move gold prices next?
Global economic data, central bank policies, inflation trends, and renewed trading volume after holidays will influence the next move.
Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.
| Follow us on |
| Telegram, Whatsapp , Facebook, Twitter, Instagram, YouTube, Google Business Profile and Truth Social. |