Despite gold retreating from the record highs reached in late January, Wells Fargo has advised clients to take advantage of the current pullback to build positions, anticipating a renewed upward move in the precious metal in the near term.
Spot gold has rebounded from its early-February lows but remains more than 10% below its all-time high of $5,594.82 per ounce, recorded on January 29. Meanwhile, U.S. April gold futures have climbed back above the $5,000 level, though they are still below their record peak of over $5,300.
The recent price stabilization followed sharp declines, with the SPDR Gold Shares ETF dropping حوالي 10% on January 30 and a further 4% the following day. However, the bank believes these moves do not justify the wave of panic that swept through markets.
In a note issued Monday, analyst Edward Lee said the latest pullback represents a healthy technical correction after an exceptionally strong rally. He pointed out that gold had traded more than 30% above its 200-day moving average between January 22 and 29 — a level that is difficult to sustain and typically prompts profit-taking. He expects a period of consolidation following the rapid gains.
Wells Fargo has raised its year-end 2026 price target for gold to a range of $6,100–$6,300 per ounce, implying potential gains of at least 20% from Tuesday morning futures levels.
The bank’s outlook reflects its view that the current declines present opportunities to increase exposure to gold rather than signals that the bull cycle has ended. Lee added that the metal is likely to remain supported by ongoing geopolitical uncertainty, macroeconomic volatility, and sustained central bank demand.
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