Gold Reclaims $5,000, Dollar Weakens and "Buy the Dip" Returns
Spot gold prices climbed back into the psychological $5,000 area on Monday, February 9, 2026, during the Asian session, after a highly volatile week. XAU/USD was recorded at around $5,028 with a daily range of $4,961–$5,046, indicating renewed buying interest each time the price corrected.
This increase was also supported by a weakening US dollar. The dollar index (DXY) fell to around 97.57 on February 9, maintaining gold's appeal as a hedge against a weakening US currency.
From a monetary policy perspective, the market is also still considering the scenario of the Fed keeping interest rates on hold in March, with expectations of the first cut pointing to June at the earliest (referring to probabilities on CME FedWatch). Such conditions typically act as a tailwind for gold, as the opportunity cost of holding a non-yielding asset tends to decline when interest rates are perceived to be trending downward.
However, the broader context remains the same: gold is in a period of extreme volatility. Reuters noted that gold plunged around 10% in a single day—its worst in more than 40 years—and then posted a major rebound just days later, with weekly volatility soaring.
This volatility was exacerbated by adjustments to risk rules on derivatives exchanges. The CME again raised margins on gold and silver contracts (the third time since the new percentage method was implemented), which in effect makes "leveraging" more expensive and can trigger forced selling during market volatility. In early February, Reuters also reported that the continued decline in gold and silver was also being pressured by higher margins following a speculative rally and changing expectations for US monetary policy.
Meanwhile, on the geopolitical front, concerns about the US-Iran conflict eased after nuclear talks facilitated by Oman reportedly got off to a "good start," which also weighed on oil prices at the start of the week. However, uncertainty has not disappeared: Iran has asserted its right to enrich uranium as non-negotiable, so headline risk still has the potential to emerge at any time—and this often maintains hedging demand for gold.
Today's Technical Levels in Focus
With the price returning above $5,000, this area has become a "barometer" for intraday direction:
Key support: $5,000, then $4,975–$4,961 (lower bound of today's range).
Near resistance: $5,046–$5,050 (high of today's range).
Next psychological target: $5,100 (a record area briefly reached in late January).
Interim resistance: $5,182 (another record set during the January rally).
As long as the price remains above $5,000, the very short-term bias favors a continued rebound. Conversely, if $5,000 fails to hold and the price falls back below that level, the market will typically open up room for a retest to $4,97xx–$4,96xx (referring to today's range).
Going forward, market participants will continue to monitor two things: the direction of the dollar, interest rate expectations, and further developments in the US–Iran negotiations. The combination of a weakening dollar and global uncertainty remains the most common formula for gold to remain strong, but high volatility means movements can remain rapid and non-linear.
Source: Newsmaker.id
