（Singapore, 17.02.2026）Gold prices fell below the key $5,000 level on Tuesday as thin trading during the Lunar New Year holidays and a firmer US dollar weighed on the market.
With many major Asian financial centres closed — including mainland China, Hong Kong, Singapore, Taiwan and South Korea — trading activity was light. US markets were also shut on Monday for Presidents’ Day, further reducing liquidity across global markets.
Spot gold dropped nearly 1% at one stage before recovering slightly. By late morning in Singapore, bullion was trading around $4,950 to $4,970 an ounce, down roughly 0.5% to 1% on the day. US gold futures also declined, falling more than 1% in early trading.
The stronger US dollar added pressure. The dollar index rose modestly, making gold which is priced in dollars, more expensive for holders of other currencies. When the dollar strengthens, gold often faces selling pressure.
Volatile Trading After Record Rally
The latest pullback comes after a highly volatile few weeks for precious metal.
Gold surged to an all-time high above $5,595 an ounce in late January, driven by heavy speculative buying and strong investor interest. However, that rally quickly reversed. Prices plunged sharply in early February, dropping to nearly $4,400 in just two days.
Since then, gold has recovered roughly half of those losses, but trading has remained choppy. Analysts say the $5,000 level has become an important psychological threshold. If prices stay below that mark for too long, it could discourage bullish traders and trigger further short-term selling.
Despite the recent dip, many analysts remain constructive on gold’s broader outlook. Recent US inflation data showed consumer prices rose less than expected in January, strengthening expectations that the Federal Reserve could begin cutting interest rates later this year.
Markets are currently pricing in at least two 25-basis-point rate cuts in 2026, with a strong chance that the first move could come as early as June. Lower interest rates are generally supportive for gold because it does not pay interest. When borrowing costs fall and bond yields decline, gold tends to become more attractive to investors.
Several major global banks continue to forecast that gold could resume its upward trend, citing persistent inflation concerns, geopolitical uncertainty and worries about long-term currency debasement.
Geopolitics, Oil and Cautious Asian Markets
Geopolitical developments are also shaping investor sentiment.
Markets are closely watching renewed nuclear talks between the United States and Iran in Geneva. US President Donald Trump said he would be “indirectly” involved in the negotiations, while Iran’s foreign minister has met with the head of the UN nuclear watchdog. Meanwhile, Iran’s Revolutionary Guards navy conducted drills in the Strait of Hormuz, a critical route that handles about 20% of global oil shipments.
Oil prices rose ahead of the talks, reflecting concerns over potential supply disruptions. Brent crude and US West Texas Intermediate both gained more than 1%.
Across Asia, markets were cautious in thin trading. Japan’s Nikkei index slipped about 0.5% after data showed the country’s economy grew just 0.2% in the fourth quarter, far below expectations. The weaker figures have increased speculation that Prime Minister Sanae Takaichi may introduce additional fiscal stimulus. Traders also see only a slim chance that the Bank of Japan will raise interest rates at its next meeting.
Currency markets were relatively steady, though the dollar remained firm. Investors are now awaiting minutes from the Federal Reserve’s January meeting and upcoming US GDP data for clearer signals on the timing of potential rate cuts.
Other precious metals also weakened. Silver fell sharply before stabilizing, while platinum and palladium posted moderate losses.
With many Asian markets still closed for the Lunar New Year holidays, analysts expect trading conditions to remain thin and potentially volatile in the coming days. For now, gold remains caught between supportive long-term fundamentals and short-term pressure from a stronger dollar, as investors watch closely to see whether prices can regain ground above the $5,000 level.
