LONDON, March 5, 2026, 17:44 GMT
- Spot gold slipped roughly 1%, erasing earlier gains as the dollar firmed and U.S. yields climbed.
- Inflation jitters surfaced as oil prices climbed, and traders considered the chance that Fed rate cuts could take longer to arrive.
- Attention now shifts to Friday’s U.S. jobs report, with the Fed’s March 18 policy decision also on deck.
Gold slipped Thursday, erasing its earlier advance as higher U.S. Treasury yields and a stronger dollar overshadowed renewed safe-haven buying.
Spot gold fell 1.2% to $5,075.54 an ounce by 1648 GMT, pulling back from an earlier high of $5,194.59. U.S. gold futures were also lower, off 1% at $5,085.
This shift stands out now, with investors fleeing to safety while oil prices climb and inflation worries pick up—factors that usually prop up both the dollar and yields. That’s a tough setup for bullion.
Gold, often touted as a long-term inflation hedge, doesn’t offer any yield. That can be a problem when bond yields head higher and traders scale down expectations for rate cuts.
Bart Melek, who oversees commodity strategy at TD Securities, pointed out that investors are weighing up rising oil prices and inflation risks, while stronger Treasury yields typically put some pressure on gold.
The U.S.-Israeli air campaign against Iran pushed into its sixth day as residents described intensified bombing, and Tehran promised a response following a U.S. strike on a vessel beyond the immediate conflict area. With energy-supply fears still running high, oil prices found support, stirring fresh worries about persistent inflation.
The dollar index gained 0.5%, pushing up the price of gold for buyers paying with other currencies. Yields on 10-year Treasuries hit a three-week peak, which lifted the opportunity cost of owning bullion.
Thursday’s U.S. data put weekly jobless claims flat. Another release, though, showed layoffs dropping steeply in February. The Federal Reserve, for its part, noted on Wednesday that economic activity ticked up a bit, prices kept climbing, and employment stayed steady in the last several weeks.
Eyes now turn to Friday’s U.S. February jobs report, a crucial data point ahead of the Fed’s March 18 meeting. Markets are largely pricing in no change to rates from policymakers.
Since late January’s surge to a record $5,594.82, gold has seesawed. Sharp moves followed that peak. On Monday, prices briefly punched through $5,400 as safe-haven demand spiked on the war, though the dollar attracted its own safety flows.
The situation can shift fast. Should tensions in the Middle East subside or oil get cheaper, yields might pull back and gold could steady. On the other hand, persistent inflation worries and a stronger dollar would only add to gold’s headwinds—risk or no risk.
Spot silver lost 1.9% to $81.83 an ounce on Thursday. Platinum eased 1% to $2,128.14, while palladium shed 2.8% to $1,628.50.
