Gold futures surpassed the psychologically significant threshold of $5,000 per ounce as prices consolidated around that region.
Even as gold fell slightly in Asian trading on Thursday, prices were above the crucial level of $5,000 per ounce.
According to experts, gold’s rebound above $5,000 is a psychological victory for the yellow metal.
Break above psychological barrier
The move also saw futures recapture their 20-day simple moving average, a short-term trend indicator that had briefly given way just one session prior,” analysts at Kitco.com said in a report.
The brief breach only served to highlight the underlying strength of the broader uptrend.
Since the beginning of 2026, gold futures have consistently demonstrated resilience, closing below this short-term average on only two days.
This pattern confirms the steady buying pressure that has driven the metal’s climb.
The longer-term technical outlook is just as positive, Kitco analysts said.
All key simple moving averages—the 50-day, 100-day, and 200-day—have consistently remained below the current spot price since August 2025, they added.
This enduring technical alignment points to exceptionally strong and sustained bullish momentum that has been maintained for close to six months.
“Crucially, these averages remain in full bullish alignment — with shorter-term averages stacked above longer-term ones — a configuration that has been intact since January 2025 and is widely regarded by technical analysts as one of the more reliable signals of a durable, well-supported uptrend,” the analysts said.
Gold is consolidating around the $5,000 mark on Thursday.
Mixed cues and a strong US dollar, following hawkish US Fed minutes from January, weighed on sentiments for the non-yielding metal.
Meanwhile, the US dollar remained stable at a level not seen in over a week.
This strength made bullion, which is priced in the greenback, more costly for investors holding other currencies.
At the time of writing, the COMEX gold contract was largely steady at $5,011.15 per ounce.
Elsewhere, silver prices were slightly higher by 0.3% at $77.880 per ounce.
Mixed cues from Fed minutes
The minutes from the Fed’s January meeting showed a significant division among policymakers regarding both the need for and the schedule of additional interest rate reductions.
While some Federal Reserve officials suggested that further rate cuts would be justified if the anticipated drop in inflation occurs, others voiced concern that premature easing could jeopardise the central bank’s goal of achieving 2% inflation.
The need for the Fed to maintain steady interest rates was supported by encouraging US data, specifically a better-than-expected rise in industrial production in January and the largest jump in manufacturing output in 11 months.
“The outlook, in turn, triggered a sharp rise in the US Treasury bond yields and provided a goodish lift to the USD. That said, markets are still pricing in the possibility of three 25 basis points (bps) Fed rate cuts this year,” Haresh Menghani, editor at FXStreet, said in a report.
However, threats to the Federal Reserve’s independence limit the potential appreciation of the dollar, providing a measure of support for gold.
This factor, combined with ongoing geopolitical tensions, serves as a tailwind for the safe-haven precious metal, according to Menghani.
Consequently, aggressive bearish traders should exercise caution, he added.
It would be advisable to wait for confirmatory follow-through selling before taking positions for further declines in gold’s price, Menghani said.
Thursday’s upcoming US economic docket is now the focus for traders.
Key releases to watch include the weekly initial jobless claims, the Philly Fed manufacturing index, and pending home sales data.
Attention will be fixed on the US Personal Consumption Expenditure (PCE) Price Index, set for release on Friday.
This key data is expected to offer guidance on the Fed’s trajectory for rate cuts, which will subsequently influence the dollar and, consequently, the price of gold.
Outlook
Experts believe that gold prices have to consolidate strongly above the $5,000 per ounce for further upside.
While the precious metal has seemingly established support above the 100-hour Simple Moving Average (SMA), bullish traders should remain cautious due to the overnight inability to sustain a price above the $5,000 level.
“Moreover, the Moving Average Convergence Divergence (MACD) line has slipped below the signal line near the zero mark, and the histogram turned negative, suggesting waning upside momentum,” Menghani said.
The relative strength index (RSI) is at 59, which is neutral, meaning the gold market is currently balanced after being overbought earlier.
The immediate support level is the 100-hour SMA at $4,956.71.
The intraday trend remains positive as long as the price stays above this SMA.
“A bullish crossover in the MACD and a sustained move back above zero would improve momentum, and an RSI push through 60 would reinforce follow-through on the upside,” Menghani said.
https://invezz.com/news/2026/02/19/gold-steady-needs-to-hold-above-5000-to-extend-gains-experts-say/
