Core Viewpoint - The recent sharp correction in gold prices, following a record surge, is seen as a natural market phenomenon and not an end to the bull market, as it helps relieve market pressure [1][2]. Group 1: Market Dynamics - In early 2026, the gold market experienced unprecedented volatility, with prices hitting multiple historical highs in less than three weeks, while silver surged by 200% year-on-year at its peak [2]. - Despite a drop below key support levels to $4,402 per ounce, gold prices quickly rebounded, demonstrating strong resilience [2]. - The current majority of gold buyers are not seeking short-term capital gains but are instead looking to hedge against investment risks, currency devaluation, and geopolitical uncertainties [2]. Group 2: Investor Behavior - The fear of missing out (FOMO) is driving investors who missed previous gains to re-enter the market, particularly during price corrections, which often leads to increased physical buying [2]. - Although speculative activities have surged recently, ongoing central bank purchases and solid fundamental demand continue to provide strong support for gold prices [2]. Group 3: Future Outlook - Institutional investors still have low allocations to gold, and increased investments from long-term capital such as pension funds and family offices could significantly boost gold prices [3]. - While some analysts predict gold could rise to $6,000 or even $8,000, the fundamental drivers of price increases, such as debt imbalances and geopolitical tensions, are expected to evolve slowly [3]. - The recent price correction is viewed as a reset of market sentiment, attracting more rational buyers and solidifying the foundation for future price increases [3]. Group 4: Technical Analysis - On February 3, gold showed a strong rebound, approaching the key resistance level of $4,950, with stronger resistance expected between $5,010 and $5,110 [4]. - Current technical indicators suggest that the rebound is more of a technical correction rather than a fundamental trend reversal, with short-term support levels at $4,700 and $4,545 [4]. - The $4,800 level is identified as a critical short-term threshold; if gold can maintain above this level, it may attract new short-term buying, while a drop below could lead to rapid selling pressure [4].