Gold Dips Below US$5,000 After 14% Rally

Abu Dhabi, UAE – February 19, 2026: Gold’s pullback below the US$5,000 level this week should not unsettle investors, according to eToro, which views the move as a natural consolidation within one of the strongest bull runs in recent years.

“Gold showed dip below US$5,000 this week that should not rattle investors. If anything, it is a healthy pause in what remains one of the strongest bull runs in recent memory,” said Zavier Wong, Market Analyst at eToro.
The precious metal touched fresh record highs above US$5,000 earlier this month before retreating, following
market reaction to former US President Donald Trump’s nomination of Kevin Warsh as Federal Reserve Chair.
Investors interpreted the pick as hawkish, weighing on gold prices in the short term.
The move was further amplified by thinner trading volumes during the Lunar New Year period and US market holidays. However, Wong noted that much of the initial reaction has already been priced in, and the broader drivers behind gold’s rally remain firmly intact.

“Gold has gained more than 14% since the start of the year, and the conditions that have driven that rally – including
geopolitical uncertainty, sticky inflation concerns, and a shifting US rate outlook – haven't gone anywhere,” Wong added.

For UAE investors, the fundamentals supporting gold remain unchanged. Central bank buying continues at a steady pace, ETF inflows are building, and institutional conviction behind the rally appears far from exhausted.
“When you layer in growing expectations that the US Federal Reserve could cut rates later this year, the case for
holding gold only strengthens,” Wong said. “That means another leg higher from here is not off the cards, and
further record highs aren’t out of the question.”
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Wong emphasised that the current price action should be viewed as the market “catching its breath” rather than losing conviction, with gold continuing to trade near key technical support levels.

“The best way to look at this current consolidation is that the market is essentially catching its breath rather than
losing conviction. Any fresh catalyst – whether a softer US inflation print or an escalation in geopolitical tensions –
could quickly reignite momentum,” he said.

For investors in the UAE already holding gold, this week’s volatility is likely to be short-term noise. For those still on the sidelines, Wong suggested it may offer a more attractive entry point than seen in recent weeks.

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