Gold Falls Below $5,000 Following 14% Surge

Editor’s note: Gold has surged on geopolitical uncertainty and sticky inflation, creating a broad bullish backdrop that has carried prices to fresh highs. A pause in the rally, like this week’s dip below US$5,000, can be a healthy consolidation rather than a sign of weakness. This editorial note frames the accompanying press release as a measured read on near-term dynamics, while acknowledging the longer-term drivers — such as central bank activity, ETF demand, and policy expectations — that keep gold well bid. For UAE investors and global traders, the current pullback may offer a cautious entry point into the next leg higher.

Key points

• Gold dips below US$5,000 after a 14% year-to-date rally, seen as consolidation by eToro.
• The move followed hawkish signals from Trump nominee Warsh; trading volumes thinner during Lunar New Year.
• Longer-term drivers remain intact: geopolitical risk, sticky inflation, and a shifting US rate outlook.
• Potential for another leg higher as Fed rate trajectory and cut expectations evolve; UAE investors see entry points in volatility.

Why this matters

This release underlines that near-term volatility does not erase gold’s fundamental support, with central bank demand and ETF inflows suggesting further upside as policy expectations evolve.

What to watch next

• Monitor US inflation data for potential shifts in rate expectations.
• Watch for new geopolitical developments that could reignite momentum.
• Track ETF inflows and central bank activity that could sustain the rally.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Press release: Gold Dips Below US$5,000 After 14% Rally

Abu Dhabi, UAE – February 19, 2026: Gold’s pullback below the US$5,000 level this week should not unsettle investors, according to eToro, which views the move as a natural consolidation within one of the strongest bull runs in recent years.

Gold’s dip below US$5,000 this week shouldn’t rattle investors. If anything, it’s a healthy pause in what remains one of the strongest bull runs in recent memory. — Zavier Wong, Market Analyst at eToro

The precious metal touched fresh record highs above US$5,000 earlier this month before retreating, following market reaction to former US President Donald Trump’s nomination of Kevin Warsh as Federal Reserve Chair. Investors interpreted the pick as hawkish, weighing on gold prices in the short term.

The move was further amplified by thinner trading volumes during the Lunar New Year period and US market holidays. However, Wong noted that much of the initial reaction has already been priced in, and the broader drivers behind gold’s rally remain firmly intact.

“Gold has gained more than 14% since the start of the year, and the conditions that have driven that rally — including geopolitical uncertainty, sticky inflation concerns, and a shifting US rate outlook — haven’t gone anywhere.” — Wong added

For UAE investors, the fundamentals supporting gold remain unchanged. Central bank buying continues at a steady pace, ETF inflows are building, and institutional conviction behind the rally appears far from exhausted.

“When you layer in growing expectations that the US Federal Reserve could cut rates later this year, the case for holding gold only strengthens. That means another leg higher from here is not off the cards, and further record highs aren’t out of the question.” — Zavier Wong, Market Analyst at eToro

Wong emphasised that the current price action should be viewed as the market “catching its breath” rather than losing conviction, with gold continuing to trade near key technical support levels.

“The best way to look at this current consolidation is that the market is essentially catching its breath rather than losing conviction. Any fresh catalyst – whether a softer US inflation print or an escalation in geopolitical tensions – could quickly reignite momentum.” — he said.

For investors in the UAE already holding gold, this week’s volatility is likely to be short-term noise. For those still on the sidelines, Wong suggested it may offer a more attractive entry point than seen in recent weeks.

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