Gold prices continue to navigate a landscape of extreme volatility, currently holding firm near the **$5,230** per ounce mark as of late February 2026. While the market recently witnessed an abrupt 10% correction that shook speculative confidence, the broader uptrend remains intact. The metal has reclaimed its position above the critical **$5,000** psychological floor, supported by a renewed "risk-off" rotation following significant instability in global equities. Central bank activity remains the primary structural pillar of this rally. Global reserves have expanded by approximately **15%** compared to last year. Institutions are increasingly prioritizing long-term stability over short-term gains, with **95%** of central banks signaling intent to further increase gold holdings through 2026. Estimated total purchases for the year are projected at **755 tonnes**, nearly double the pre-2022 historical average. China continues to exert a dominant influence on price discovery. Despite the temporary liquidity vacuum caused by the Lunar New Year holiday, Chinese investment demand grew by **28%** over the past year. Retail participation in the region is shifting from traditional jewelry to investment-grade bullion, fueled by property market weakness and a desire for safe-haven assets. In domestic markets, prices have mirrored global surges, reaching record highs of approximately **₹16,178** per gram for 24K gold. This represents a significant late-month recovery from mid-February lows near **₹15,420**. The "debasement trade"—the migration of capital from fiat currencies to tangible assets—is accelerating as investors hedge against rising global debt and trade uncertainties. Traditional valuation models are largely being ignored as gold trades at a historic premium. The current narrative is driven by geopolitical stress and currency diversification rather than interest rate fundamentals. Market analysts have raised year-end targets, with some institutions projecting prices could reach **$5,400** to **$6,300** if current liquidity levels and investor sentiment persist. The path forward depends on the resilience of these global narratives. Key technical levels to monitor include the **$5,100** support zone and the recent intraday peak of **$5,394**. As long as prices stay above the **$5,000** threshold, the momentum is expected to favor buyers, though the market remains sensitive to shifts in the U.S. dollar and cooling geopolitical tensions.