As 2026 begins, gold market movements continue to capture the attention of global investors.
Sharp surges—record highs—steep declines—recoveries—sideways fluctuations: amid intense volatility, market sentiment swings repeatedly between euphoria and panic. Some investors have cut losses and exited, while others have bought on dips; still others have rushed into the market only to endure anxiety during its turbulent swings.
As of 11:00 on February 6, the international spot gold price hovered around $4,850 per ounce, up approximately 12% since the start of the year, outperforming most major market indices. However, compared to the historic high set on January 29, the price of gold has retreated by more than $700 per ounce.
Market divergence is intensifying. Questions from investors are pouring in: "Is gold still a buy?" "Should I choose gold accumulation plans or gold ETFs?" "How far can this rally go?" At the same time, some investors are quietly shifting their focus to other minor metals, attempting to identify the next potential high-flyer beyond the gold and silver frenzy.
In a recent discussion on the sharp fluctuations and future direction of the gold market, Ao Chong, Chief Analyst of the Nonferrous Metals Sector at CITIC SEC, shared insights into the core drivers of the current trend and the logic behind the price volatility.
Ao Chong clearly stated that the upward trend in gold is not yet over, identifying liquidity expectations as the primary force currently driving gold prices. Additionally, ongoing geopolitical conflicts are providing periodic support through safe-haven demand.
Ao Chong further analyzed that with continued liquidity injections, the Chinese and global economies could experience a phased recovery within the next 6 to 12 months, boosting market demand. Coupled with supply constraints, this could help metal prices regain support after adjustments and potentially reach new highs.
Beyond gold and silver, Ao Chong expressed a more favorable medium- to long-term outlook for copper, due to its dual appeal from liquidity drivers and potential improvements in supply-demand dynamics. For some minor metal varieties that have already seen significant gains, he warned of price volatility risks driven predominantly by speculative demand.
Ao Chong concluded by reminding investors that the nonferrous metals sector follows a unique valuation logic—"buy at high P/E, sell at low P/E"—which is the opposite of traditional industries. At the current juncture, he recommended a strategy combining "holding" with "partial profit-taking" to balance returns and risks.
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