Veteran commodities analyst Ole Hansen sees gold prices consolidating rather than correcting after breaching $6,000 an ounce.
- Gold hit an all-time high on Wednesday, before paring some of the gains, ahead of the Federal Open Market Committee’s policy announcement later in the day.
- Investors broadly expect no rate cut this time.
- Gold futures for February deliveries surged more than 4% to $5,290 an ounce.
Gold hit an all-time high on Wednesday, before paring some of the gains, ahead of the Federal Open Market Committee’s (FOMC) policy announcement later in the day.
At the time of writing, spot gold (XAU/USD) was up 2.4% at $5,306 an ounce, hovering near its intraday record high of $5,311.67. Gold futures for February deliveries surged more than 4% to $5,290 an ounce.
Meanwhile, spot silver (XAG/USD) was up 2.5% at $114.7 an ounce.
Consolidation Post $6,000
Veteran commodities analyst Ole Hansen of Saxo Bank says gold still has room to run, as geopolitical risks have yet to meaningfully hit global growth. With central-bank buying easing and private and institutional inflows taking the lead, he sees prices potentially rising toward $6,000 an ounce before entering a period of consolidation.
“For a non-yielding asset such as gold, continued inflows are required to justify ever-higher prices. Momentum could still carry prices towards $6,000 if macro or political risks intensify, but beyond that level, the risk of consolidation rises, rather than an imminent major correction,” Hansen said in a blog post on Wednesday.
FOMC Meet
The Fed’s policy-setting committee convened on January 27 and 28 for its first meeting of 2026, following three quarter-point rate cuts late last year. Investors broadly expect no policy change this time.
Prediction markets such as Kalshi and Polymarket expect the Fed to keep rates unchanged this week, while the CME Group’s FedWatch tool shows a 97.2% probability that interest rates remain in the 3.5% to 3.75% range.
Retail Watch
Retail sentiment on SPDR Gold Shares ETF on Stocktwits remained in the ‘extremely bullish’ territory over the past 24 hours, amid ‘extremely high’ message volumes.
One user noted that every dip in gold is being bought up.
Year-to-date, spot gold prices have risen 44%.
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