As of early February 1, 2026 (around 5 AM +07 in Phnom Penh), the live spot price of gold stands at approximately $4,890–$4,905 per troy ounce in USD. This marks a dramatic single-day plunge of 8–9% (roughly $480–$490 lower than the prior close), following an explosive rally that pushed prices to all-time highs above $5,500–$5,600 just days earlier.
Gold's longer-term trajectory has been sharply upward, with the metal doubling in value over the past couple of years and posting extraordinary gains—over 60% in 2025 alone. This bull run reflects deep structural shifts in global finance and geopolitics. Central banks, especially in emerging markets like China, India, Poland, and Turkey, have been aggressive buyers, adding hundreds of tonnes annually (863 tonnes in 2025, still elevated despite a slowdown from prior peaks above 1,000 tonnes). This diversification away from U.S. dollar assets stems from concerns over dollar dominance, potential sanctions risks, and currency debasement fears. Investors have mirrored this trend through surging ETF inflows, bar-and-coin purchases, and speculative positioning, viewing gold as a hedge against persistent inflation, trade disruptions, and broader economic instability. Geopolitical flashpoints—tariff threats, regional conflicts, and uncertainty around U.S. policy—have amplified safe-haven demand, while expectations of looser monetary policy later in 2026 further bolstered the appeal of non-yielding assets like gold.
The sharp reversal this week, however, highlights the market's volatility after such a parabolic advance. Heavy profit-taking ensued as traders locked in gains from the rapid climb to record levels. A key trigger was the nomination of Kevin Warsh as the next Federal Reserve chair, perceived as a more hawkish and independent choice than some feared alternatives. This eased worries about eroded Fed autonomy or aggressive rate cuts, strengthening the U.S. dollar and making gold costlier for international buyers. The firmer dollar reduced gold's relative attractiveness compared to yield-bearing assets, prompting widespread selling across precious metals (silver saw even steeper drops). Technical factors, including overbought conditions and margin calls in leveraged positions, accelerated the decline.
Despite the correction, gold remains historically elevated and structurally supported. Forecasts from major institutions like UBS ($6,200 in parts of 2026), Deutsche Bank ($6,000), and others suggest potential for renewed upside if geopolitical risks intensify or central bank buying resumes robustly. The metal is still on pace for exceptional monthly performance—its best in decades—underscoring that pullbacks in bull markets often serve as healthy resets rather than trend reversals. Prices can shift rapidly, so monitor live feeds from reliable sources like Kitco, APMEX, or JM Bullion for the latest quotes.
