Gold Extends Downturn

2026-02-17 16:19 By Felipe Alarcon 1 min. read

Gold fell more than 2% to around $4,870 per ounce as a strengthening US Dollar Index and recalibrated expectations for Federal Reserve easing eroded bullion’s near-term support.

The USD extended its rebound as investors reassessed monetary policy trajectories, with January’s softer US inflation print reinforcing expectations for more than one rate cut this year, robust nonfarm payroll growth, firm private hiring, and projections of continued GDP expansion have tempered the case for an imminent or aggressive easing cycle.

That combination has preserved US rate differentials and lifted the dollar, exerting downward pressure on dollar-denominated gold.

Although ongoing geopolitical flashpoints, including renewed US-Iran nuclear discussions and negotiations between Russia and Ukraine, continue to underpin gold’s safe-haven appeal, the dominant driver in this phase has been the currency channel.



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