Gold and silver prices rose sharply after the crash, but fell again on Tuesday. Amidst these fluctuations, investors are wondering whether the rates of gold and silver will rise further or fall further. A new report has come out which predicts the movement of gold, especially in the coming days, and further rise in the price of gold is predicted. China’s important connection has also been said to be the reason behind this increase.
positive gold sentiment
Last year, the rise in gold rates continued till the end of January, which is the first month of 2026. On January 29, gold had hit a peak of ₹193,096 per 10 grams on MCX, while the international price also crossed $5,000 an ounce for the first time. However, despite the sharp decline after the initial rally of the year, experts expect gold prices to provide good support.
Gold remains strong despite the selloff
According to the new gold report by Geojit Investments released on February 10, after huge fluctuations in January, gold prices have stabilized above the psychologically necessary level of $5,000 an ounce. Gold prices hit a record high of $5,594 an ounce in the London spot market in January, but there was a massive selloff at the end of the month. Easing geopolitical tension played an important role in the fall in prices. Despite this decline, prices remain above $5,000 on both the LBMA and COMEX markets, with gains of more than 10% month-to-month, indicating strong demand.
Demand supporting gold prices
One of the main reasons for strengthening the outlook for gold is the continuous increase in investment. According to the report, total global gold demand will exceed 5,000 tonnes for the first time in 2025, taking the total market value to $555 billion, which is 45% more than last year. Gold investment played an important role in this increase. The share of gold in global gold exchange-traded funds (Gold ETFs) increased by 801 tonnes, the second largest annual increase on record. Demand for gold bars and coins also reached its highest level in 12 years, which shows the growing demand for gold as a safe investment. There are several specific reasons for this potential increase.
Reason 1: Investing heavily in Gold ETFs
This surge in gold investments continues through 2026, with January’s strongest monthly inflows ever recorded in gold ETFs at $19 billion. This brought assets under management for global ETFs to a record $669 billion. Total global reserves also reached an all-time high of 4,145 tonnes, boosting investors’ confidence in gold to avoid financial crises.
Second reason: Central bank buying, including in China
Buying by Central Banks around the world remains another important reason for the rise in gold prices. Net purchases by central banks in 2025, estimated at 328 tonnes, are slightly below the 2024 level. China played a key role in the rise in gold prices as its central bank, the People’s Bank of China, continued purchases for the 15th consecutive month in January, further strengthening the role of public sector demand in supporting prices.
The gold isn’t stopping any time soon!
Citing these factors, the report estimates that gold prices may remain range-bound in the short term, but are expected to rise in the mid-term and long-term. A reduction in global tensions may slow down the price, but continued buying by central banks and strong ETF investments seem to be strengthening the price. Analysts believe that after the current phase of profit-booking ends, the focus of the commodity market will return to these reasons, which will further strengthen the position of gold.
