Gold and Silver Prices Extend Bull Run for Third Consecutive Session
Gold and silver prices continued their upward trajectory for the third straight session on Thursday, February 5, as investors resumed buying the precious metals following a sharp correction from recent record highs. The sustained rally reflects renewed confidence in bullion amid evolving market dynamics.
Spot Prices Show Significant Gains
During Asian trading hours on Thursday, spot gold climbed nearly 2 percent to reach $5,039 per ounce. Meanwhile, spot silver experienced an even more pronounced surge, jumping as much as 6 percent to $89.34 per ounce. This recovery comes after both metals had retreated from their peaks earlier in the week.
At Wednesday's market close, gold prices remained approximately 11 percent below the all-time high achieved on January 29. Despite this pullback, the yellow metal has maintained an impressive 15 percent gain for the year. Silver prices have similarly demonstrated resilience, moving higher alongside gold.
Geopolitical and Economic Factors Driving the Rally
Several key developments are contributing to the renewed strength in precious metals:
- Geopolitical Tensions: Iran and the United States are scheduled to hold diplomatic talks on Friday. Additionally, US President Donald Trump engaged in extensive discussions with Chinese President Xi Jinping ahead of an anticipated visit to China in April, following Xi's virtual meeting with Russian President Vladimir Putin.
- US Economic Data: Private sector hiring in the United States fell short of expectations, with ADP data revealing only 22,000 jobs added in January compared to forecasts of 48,000. The delayed January employment report from the US Bureau of Labor Statistics is now set for release on February 11.
- Market Sentiment: Safe-haven buying has strengthened amid rising geopolitical concerns, including recent incidents such as US forces shooting down an Iranian drone. The partial US government shutdown and profit-taking in the dollar index have also provided support.
Analyst Perspectives on the Recovery
Rahul Kalantri, Vice President of Commodities at Mehta Equities, noted that gold and silver prices have rebounded from recent lows after two consecutive sessions of sharp selling. "Markets have largely absorbed the nomination of Kevin Warsh as the new Fed Chairman," Kalantri observed. "Support also came from a partial US government shutdown and profit-taking in the dollar index from its highs."
Several major financial institutions are expressing confidence in the ongoing recovery:
- Deutsche Bank AG maintains its bullish outlook, forecasting that bullion could surge to $6,000 per ounce.
- Goldman Sachs continues to see upside potential to its $5,400 per ounce gold price target for December 2026, citing stronger-than-expected private-sector demand as a potential catalyst.
Should Investors Consider Buying During the Rally?
According to Ponmudi R, CEO of Enrich Money, COMEX Gold is currently trading near the $5,000–$5,100 reference zone after cooling off from its sharp spike above $5,000. "The recent decline has helped reset momentum indicators, allowing the broader uptrend to gradually re-emerge," he explained.
Ponmudi highlighted that prices have stabilized and reclaimed key moving averages, signaling trend resumption rather than exhaustion. "Strong buying interest continues to emerge in the $4,600–$4,800 support band, reinforcing this zone as a critical demand base," he added.
Regarding silver, Ponmudi noted that COMEX Silver is consolidating within the $79–$90 zone after testing record highs above $121.6. "Prices are holding above key moving averages, suggesting healthy consolidation rather than trend exhaustion," he stated. Structural supply deficits and steady industrial demand continue to support the bullish outlook for silver.
The precious metals market experienced significant volatility last month, driven by speculative buying, geopolitical tensions, and concerns over Federal Reserve autonomy. While the rally reversed abruptly late last week—with silver suffering its steepest single-day fall ever and gold recording its sharpest drop since 2013—the current recovery suggests underlying strength remains intact.
