On February 6, gold continued to trade within a wide range. It opened slightly higher in the Asian session, touching the 5000 mark before declining sharply. By the midday session, it had fallen below 4800. However, the downward momentum did not persist, and prices fluctuated broadly between 4950 and 4800 for the rest of the day. Gold ultimately closed at $4775, forming a bearish candlestick on the daily chart.

The U.S. dollar index has risen consecutively in recent sessions, stabilizing above 97.50 and reaching a two-week high. Additionally, the United States and Iran have agreed to hold nuclear talks in Oman today, easing market concerns about a rapid escalation of tensions in the Middle East. Progress in prisoner exchange negotiations between Russia and Ukraine, with both sides agreeing to continue talks in the coming weeks, has also contributed to a reduction in geopolitical risk. This cooling of tensions has weakened gold's appeal as a safe-haven asset.

Nevertheless, the fundamental drivers supporting gold's long-term strength—such as global de-dollarization, central bank gold purchases, and expectations of Federal Reserve interest rate cuts—remain intact. Bullish sentiment in the gold market remains robust. As a result, the market is currently in a phase of seeking stability following a sharp sell-off, characterized by high volatility and unpredictable price movements. The primary focus should be on managing liquidity risks and extreme fluctuations, with a strategy emphasizing light positions, wide stop-losses, and quick execution.

From a technical perspective, yesterday’s bearish candlestick confirmed resistance near the 10-day moving average. A break below both the 5-day and 20-day moving averages indicates that the recent rebound has ended, and prices have resumed a medium-term downward correction. However, given the lingering bullish sentiment, gold is likely to trade within a wide range for an extended period.

In today’s session, resistance is expected near the 20-day moving average around 4830 and 4860. If the U.S. dollar weakens, gold may break above the 5-day and 20-day moving averages. However, from a weekly perspective, as long as gold closes below last week’s closing level of 4880, the medium-term downtrend remains a risk.

With the nonfarm payrolls report delayed until next week, gold prices may lack a clear directional catalyst today. The market is currently in a consolidation phase following a sharp decline from recent highs, with mixed macroeconomic signals and technical indicators suggesting a tug-of-war within the $4600–$5000 range. Short-term trading should focus on selling near resistance and buying near support, adjusted according to market conditions.

Today’s trading suggestion: Gold: Sell near 4850–4860, stop loss at 4870, target 4700–4690. If support holds, consider buying for a rebound. A sustained break above 4880 may also signal a short-term upward move.

Key economic data and events for Friday, February 6, 2026: 21:30 – U.S. Nonfarm Payrolls Report (delayed to February 11) 23:00 – U.S. Preliminary One-Year Inflation Expectations for February 23:00 – U.S. Preliminary University of Michigan Consumer Sentiment Index for February Next day 01:00 – Speech by Fed Governor Jefferson