Gold Ends Worst Week Since January Amid Dollar Strength and Mixed Data

Gold futures (GC=F) ended the week in negative territory, marking their worst weekly decline since early January 2026, closing at $2,284.30 per troy ounce. The drop came despite a brief rally on Friday, triggered by a U.S. jobs report showing nonfarm payrolls rose by only 98,000 in February—well below the expected 175,000. The data initially boosted safe-haven demand, lifting gold and silver (SLV) more than 1.5% intraday. However, the rebound was short-lived as the U.S. Dollar Index (DX=F) surged 0.7% for the week, reaching 106.45, the highest level since late February. The stronger dollar made gold less attractive to international buyers, as it increased the cost of the precious metal in foreign currencies. This dynamic disproportionately affected commodity-linked assets, with silver (SLV) also finishing the week down 1.9%, closing at $29.58 per ounce. The combination of elevated interest rate expectations and a resilient labor market narrative, despite the dip in hiring, contributed to the dollar’s upward momentum. Market participants are now recalibrating expectations for Federal Reserve rate cuts, with futures pricing in only one cut by year-end—down from four earlier in the month. The shift in sentiment has triggered a re-pricing of risk assets, with equities and commodities under pressure. Investors are closely watching upcoming inflation data and central bank commentary for further clarity on monetary policy direction. The weakness in gold and silver has ripple effects across the commodities sector, influencing traders' positioning in energy, metals, and agricultural markets. The broader macro environment remains sensitive to shifts in U.S. monetary policy and global risk appetite.