2026 is Shaping up to be Another Record-Breaking Year for Gold

Gold futures continued their impressive rally on Tuesday, with front month Comex gold for February delivery surging $67.80 per troy ounce to settle at $5,071.60, marking a 1.35% gain. The precious metal has demonstrated strong momentum in recent sessions, rising in five of the past seven trading days, though prices trimmed earlier gains following the release of January's employment data.

The Labor Department's jobs report revealed payroll growth significantly exceeded expectations, with 130,000 positions added compared to forecasts of 66,000 to 70,000. The unemployment rate also edged lower to 4.3% from 4.4%, signaling continued labor market resilience. These stronger-than-anticipated figures have effectively eliminated any prospect of a March rate cut from the Federal Reserve, and market pricing now suggests a June cut is no longer fully anticipated. However, traders remain positioned for potential rate reductions in July and December, a backdrop that continues to support gold's appeal as a hedge against monetary policy uncertainty.

Market attention now turns to Friday's inflation figures, which will prove instrumental in shaping the Fed's policy trajectory. Recent remarks from Federal Reserve officials have reinforced a patient approach to monetary policy. San Francisco Fed President Mary Daly indicated that current policy remains well positioned to support the labor market while combating inflation, while Dallas Fed President Lorie Logan echoed similar sentiments, suggesting the central bank is in no rush to adjust its stance.

Despite pulling back from its peak, gold's current settlement represents the fifth highest close in the metal's history and marks the strongest finish since Thursday, January 29, 2026, when gold reached its all-time high of $5,318.40. While the current price sits 4.64% below that record, it remains substantially above the year's opening settlement of $4,314.40 from January 2, underscoring the metal's robust performance in 2026.

From a technical perspective, gold appears positioned in a neutral to bullish posture. The metal has successfully converted the psychologically significant $5,000 level from resistance into support—a notable achievement given that gold futures first breached this threshold just three weeks ago. If futures can maintain a base above this key price level, the long-term outlook remains exceedingly bullish. Should prices falter, the next meaningful support level lies near $4,800.

The broader context further reinforces gold's strength. So far in 2026, the metal has advanced $746.00, translating to a year-to-date gain of 17.25%. February alone has contributed $188 to those gains, and with less than half the month completed, the period is shaping up as particularly strong for bulls. This momentum becomes even more significant when viewed alongside January's approximately $575 advance, suggesting sustained buying interest across multiple investor classes.

Wishing you as always good trading,