20.02.202601:10:55UTC+00Gold Nudges Higher

Gold climbed back above $5,000 per ounce on Friday, extending a two-day advance as traders balanced rising geopolitical risks against the Federal Reserve’s policy outlook. Tensions between the US and Iran intensified after President Donald Trump set a 10–15 day deadline for nuclear deal negotiations, while Washington deployed its largest military contingent to the Middle East since the 2003 Iraq invasion.

On the policy front, Federal Reserve Governor Stephen Miran pushed back against expectations for significant rate cuts this year, pointing to stronger-than-anticipated economic data. Underscoring that resilience, initial jobless claims slipped to 206,000 last week, signaling a still-robust labor market. Investors are now focused on PCE inflation data due later today.

The January FOMC minutes indicated a divided committee, with some officials leaving the door open to further rate hikes if inflation remains stubbornly high. In the physical market, seasonal demand in Asia is subdued following the Lunar New Year holidays. Overall, bullion is on track for a modest weekly decline.