Gold prices rebounded above the $5,000 per ounce mark on Monday as dip-buyers returned to the market following an exceptionally volatile week for precious metals.
The rebound comes after a sharp selloff at the end of last month that erased a significant portion of gains made during a historic rally.
Investors appear to be selectively re-entering positions, betting that underlying demand drivers remain intact despite recent turbulence.
Bullion rose as much as 1.7% during Asian trading, recovering further ground after last week’s rout. The metal has now clawed back about half of the losses recorded since it plunged from an all-time high reached on January 29, while silver also advanced alongside other precious metals.
What the data is saying
Early trading data points to a meaningful rebound across the precious metals complex, supported by renewed buying interest and resilient official-sector demand.
- Prices remain volatile, but recent moves suggest that buyers are stepping in at lower levels.
- As at the time of this report, gold was trading at $5,009 per ounce.
- The rebound follows a drop below $4,768 last week, marking a sharp but short-lived correction.
Silver advanced 5.8% to $82.32, while platinum was little changed and palladium edged higher.
Data released over the weekend showed that China’s central bank extended its gold purchases for a 15th consecutive month.
According to a report by the official Securities Times, these relatively small-scale purchases are expected to continue, allowing the People’s Bank of China to diversify its reserves without triggering excessive price volatility, underscoring resilient official demand that has underpinned the broader bull run.
Backstory
Precious metals had been on a record-breaking ascent since last year, driven by a mix of geopolitical tensions, concerns over currency debasement, and questions surrounding the independence of the US Federal Reserve.
These factors encouraged investors to seek safe-haven assets, pushing gold and silver to unprecedented levels.
Speculative buying further amplified the rally before both metals suffered a dramatic reversal at the end of last month.
- On January 29, 2026, gold surged to a fresh all-time high, breaking above $5,400 an ounce as investors piled into safe assets amid heightened economic and geopolitical uncertainty.
- By the end of January, gold had already gained about 25% for the year, smashing through the $5,000 per ounce threshold.
Over the same period, silver recorded even more dramatic gains, surging by about 63% and briefly topping $120 an ounce.
However, last week saw a sharp correction that stunned the market. Silver shed as much as 30% of its value, while gold fell nearly 10%, marking a dramatic reversal from the rapid price surge and highlighting the extent of speculative positioning in the market.
More insights
Silver has experienced even more violent price swings than gold, reflecting its thinner over-the-counter market and stronger speculative momentum. These dynamics have magnified both gains and losses, making silver particularly sensitive to shifts in investor sentiment.
- The white metal, which has lost more than one-third of its value since hitting a record peak, rose as much as 6% on Monday to trade above $82 an ounce.
- Market participants are now closely watching upcoming US economic data for signals on the Federal Reserve’s next policy steps.
The January US jobs report due on Wednesday is expected to show signs of labour market stabilisation, while inflation data scheduled for Friday could further influence rate expectations.
Adding to uncertainty around monetary policy, US President Donald Trump’s nominee for Federal Reserve chair, Kevin Warsh, recently voiced support for a new accord between the US central bank and the Treasury Department. The comments have reignited debate about the Fed’s independence, a key factor that has historically supported demand for gold.
What you should know
Nairametrics previously reported that gold prices surged 42.8% between September 2024 and September 2025, breaking past a then-record high of $3,650 per ounce and extending the rally into October, when prices briefly exceeded $3,800. That earlier surge was driven by a weaker US dollar, persistent inflationary pressures, and escalating geopolitical risks.
The sustained rally in global gold prices has significant implications for Nigeria. As of the end of 2024, Nigeria held 687,402 troy ounces of gold, equivalent to about 21.38 metric tonnes, now valued at approximately N3.7 trillion based on prevailing prices.
Central banks globally are also playing a growing role in driving demand. According to the World Gold Council, seven central banks added at least one tonne of gold to their reserves as of August 2025, while only two reported reductions.
Among the notable buyers was the Bank of Ghana, which added two tonnes in August, bringing its year-to-date purchases to five tonnes and total reserves to 36 tonnes, reinforcing gold’s status as a strategic reserve asset.
