With gold down from its late-January highs, Wells Fargo is now advising clients to buy the dip, expecting another rally for the precious metal soon. Spot gold is off its lows seen earlier in February, but remains down more than 10% from its record high of $5,594.82 per ounce on January 29. U.S. gold futures for April delivery have similarly rebounded back above $5,000, but remain below their record prices above $5,300. With prices stabilizing after the dramatic declines — the SPDR Gold Shares ETF plunged 10% on Jan. 30 and 4% the next day — Wells Fargo now sees no reason for investors to continue to panic. “The recent pullback appears to be a healthy correction after an exceptionally strong run,” wrote analyst Edward Lee in a Monday note. “Gold also traded over 30% above its 200-day moving average from January 22 to January 29, a difficult level to maintain and one that has often triggered profit-taking. We expect a period of consolidation following such rapid gains.” @GC.1 YTD mountain @GC.1 year-to-date chart In fact, Wells Fargo projects the rally will gain steam again, and raised its 2026 year-end price target for the yellow metal to a range of $6,100 to $6,300. That implies at least a 20% gain from where gold futures were trading Tuesday morning. That reflects Wells Fargo thinking that drawdowns such as the current one are in fact opportunities to gain more exposure in the metal — rather than a chance to take profits. “We do not believe that the bull market is over. Our view is that gold should continue to benefit from persistent geopolitical uncertainty, macroeconomic volatility and continued central-bank demand,” Lee wrote.
Wells Fargo says buy the gold pullback. Here's where it sees bullion by year-end
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