Gold faces second weekly loss ahead of Fed inflation data

Sour sentiment joins pre-data anxiety

Global financial markets started Friday in a cautious risk-off mood as tensions involving Iran and the Strait of Hormuz coincided with investor focus on the February Core Personal Consumption Expenditures (Core PCE) Price Index, the preferred inflation gauge of the Federal Reserve (Fed). Stronger recent U.S. economic data and persistent inflation worries supported the U.S. Dollar (USD), pressuring major currencies, commodities, and equities. At the same time, markets increasingly see high oil prices as a potential risk to global economic growth.

EURUSD, GBPUSD drop further, USDJPY struggles near multi-month high

Upbeat U.S. data released on Thursday, combined with rising risk aversion, helped the U.S. Dollar Index (DXY) move toward a weekly gain. The stronger USD, together with growing economic concerns in the Eurozone and the UK, pressured EURUSD and GBPUSD. As a result, EURUSD fell to its lowest level since November 2025, while both major currency pairs declined for the fourth consecutive session on Friday.

AUDUSD, NZDUSD remain weak, USDCAD extends recovery

The stronger U.S. Dollar (USD) and prevailing risk aversion are pressuring AUDUSD and NZDUSD, while USDCAD moves higher as the firm USD and cautious market sentiment prevail ahead of Canadas monthly employment data due later today. Adding support to USDCAD is the recent pullback in crude oil prices, a key export commodity for Canada.

Gold struggles to justify its haven status

Despite worsening market sentiment and aggressive gold purchases from China, gold prices are heading for a second consecutive weekly loss. The decline is mainly linked to the stronger U.S. Dollar Index (DXY), which is moving toward a second straight weekly gain. In addition, markets are consolidating the strong rally seen in gold and silver during 2025, while technical correction also contributes to the recent pullback in bullion prices.

Crude Oil bulls take a breather, cryptocurrencies edge higher, but equities remain soft

West Texas Intermediate (WTI) Crude Oil snaps its three-day winning streak and posts mild losses early Friday as traders expect some relief in the global energy supply situation after the U.S. eased sanctions on Russian oil for 30 days. However, buyers remain optimistic due to the ongoing Iran conflict and continued risks to global oil shipments passing through the Strait of Hormuz.

Latest moves of key assets

• WTI crude oil snaps a three-day winning streak by retreating to $95.30 by press time.

• Gold remains pressured around $5,090, facing a two-week downtrend as we write.

• The US Dollar Index (DXY) edges higher, posting mild gains around 99.90 as it rises for the fourth straight day.

• Wall Street closed on a negative note, and the Asia-Pacific stocks also drifted lower. On the same line, equities in Europe and the UK are modestly down during the initial hour.

• Bitcoin (BTC) and Ethereum (ETH) both post mild intraday gains, up for the fifth consecutive day, while rising to $71,300 and $2,090 at the latest.

An important day ahead…

Traders face a busy Friday with key data releases including UK and U.S. GDP, Canadas employment figures, the U.S. Core Personal Consumption Expenditures (Core PCE) Price Index, Durable Goods Orders, and the University of Michigan (UoM) Consumer Sentiment Index. Market volatility is also likely to be influenced by updates on the Iran conflict, global efforts to address energy supply risks, and statements from major central bank officials.

Predictions for top-tier assets

• Bullish Move Expected: Gold, Silver

• Further Downside Likely: USDCHF, BTCUSD, ETHUSD, USDJPY

• Sideways Movement Anticipated: USDCAD, Nasdaq, DJI30, USDCNH, AUDUSD, NZDUSD, US Dollar

• Slow & Gradual Fall Eyed: DAX, FTSE 100, EURUSD, Crude Oil, GBPUSD