Gold prices have risen after hitting a low of about $4,270. They have now exceeded the peak from December and are following a rising trend. This suggests that gold may keep gaining momentum. Future gold price targets are set at $4,645 and between $4,685 and $4,720. The recent low of $4,400 offers important support to prevent a short-term drop.

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The FXStreet Insights Team, which includes experienced journalists, has gathered market observations from both internal experts and external analysts. This analysis provides a wide range of viewpoints but does not include specific investment advice. There is a legal disclaimer reminding readers of the risks and uncertainties associated with the market. It highlights the necessity of thorough research before making any financial choices. FXStreet and its authors are not responsible for any results based on this content. Gold is clearly showing bullish momentum. It has held its multi-month rising trend line and has surpassed the highs from December 2025. This technical indicator suggests that the upward trend is gaining strength.

Fundamental Support for Gold Prices

This price increase is backed by fundamental factors noted in the latter half of last year. Central banks have continued to build their reserves, as shown by World Gold Council data, revealing they added over 800 tonnes in 2025. This steady demand supports the current price rise. Additionally, the weakened US dollar has been significant. Since the Federal Reserve adopted a more dovish approach in November 2025, the Dollar Index (DXY) has dropped nearly 4%. This decline makes gold more appealing to those holding other currencies, driving the price upwards. For derivative traders, the current conditions favor strategies that benefit from this upward trend. Buying call options with strike prices around the $4,645 and $4,685 targets, likely with expirations in February or March 2026, offers a way to participate with reduced risk. The recent low of approximately $4,400 is now a key support level. If prices fall below this point, it could indicate that the bullish trend is failing, and we would need to exit long positions. It’s essential to hold above this level to prevent a sharp, short-term decline. Create your live VT Markets account and start trading now.

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