Gold declined on cautious Fed members’ comments

5 February 2026

Today market analysis on behalf of Fadi Al Kurdi founder CEO FFA Kings

Gold retreated on Thursday, snapping a two-day rebound as a firmer US dollar weighed on prices. Recent remarks from Fed officials signaling caution regarding further easing amid lingering inflation risks supported the dollar and weighed on non-yielding assets like gold.

While two rate cuts are still expected this year, the perceived tilt toward a more conservative policy framework has increased sensitivity to any upside surprises in growth or inflation.

Beyond the Fed, attention also turns to monetary decisions in Europe and the UK. While rates are expected to remain unchanged, any forward guidance hinting at future easing could support non-yielding assets like gold.

Geopolitically, the backdrop remains supportive. Tensions in the Middle East persist despite planned talks. In Eastern Europe, ongoing hostilities continue even as peace discussions extend into a second day. Increasing tensions could help limit gold’s downside risks.

 

Zaid Barem / ymm