Last Updated on February 13, 2026 by Deon
Gold prices inched higher on Friday, after falling to their lowest level in nearly a week last session. The rebound comes as investors monitor looming U.S. inflation figures that could provide fresh clues about the future direction of interest rates.
Market sentiment is still a tad cautious as traders continue to weigh signs of stronger global economic growth against escalating risks to overseas markets, Moneycontrol said.
Gold Continues to Recover After Buckling Last Week
Gold fell hard Thursday, then mounted a tepid rebound on Friday.
Spot gold was up 0.6 per cent at $4,949.99 per ounce
The higher-place US gold futures (April) rose by 0.4% to USD 4,968.00 per ounce
Gold is still a little lower for the week, after rebounding from them, a sign of continued volatility and mixed investor sentiment.
Traders on Edge as Market Volatility Persists
Analysts argue that increased market volatility and crucial price levels are playing a major role in gold’s wild shifts.
Large psychological levels such as $5,000 often serve as turning points, said Kyle Rodda, a market analyst at.
Once those levels are breached, market moves accelerate as traders rush to adjust their positions.
Sell-Off in Equities Pressured Gold
Part of gold’s recent softer tone was the result of a steep drop in world stock markets. Growing pressures in other markets, namely stocks, were pulling precious metals lower on Thursday with no clear economic trigger.
Asian markets also fell off record highs, with worries about contracting profit margins hammering major technology firms like Apple.
Gold was also pressured by outside markets which had investors reducing their positions in several markets due to risk aversion. Solid U.S. Jobs Data Bolsters Rate Worries
Gold was, nonetheless, under pressure from stronger-than-expected U.S. jobs data earlier in the week. The report indicated that the labor market was entering 2026 in robust condition.
That reinforced expectations that the Federal Reserve could maintain higher interest rates for longer.
Because gold does not pay interest, higher rates typically reduce its appeal, relative to yield-bearing assets like bonds.
Inflation Data in Focus
Investors are now focused on major U.S. inflation numbers later in the day. They are likely to make a difference in the Fed’s next policy moves.
Currently, markets are pricing in:
Two 25-basis-point Possible rate garbage cuts in 2026
The first cut, anticipated around June
Gold also stands to gain if inflation looks like it’s cooling, as that would raise new hopes for monetary easing.
Mixed Demand in Asia
Demand in Asia for gold has been patchy:
India: Nerves rose in India, as high volatility dampened the spirit of buyers pushing pure gold prices into a discount territory for first time in month.
China: Supplies showed no sign of improving, and demand was strong in anticipation of the Lunar New Year festivities which supported local prices.
These offsets emphasize that regional forces continue to influence worldwide demand for gold.
Other Precious Metals Reboundinging
Elsewhere, metals rebounded after recent losses:
Silver was up 1.5% to $76.31 an ounce
Platinum gained 0.9% to $2,018.44
Palladium climbed 2.2% to $1,652.31
But all three metals remained on track for weekly declines, a sign of persistent jitters in the broader market.
What’s Next for Gold?
The near-term trajectory of gold will have much to do with inflation numbers and central bank cues.
Key Support Factors
Possible cuts later in 2026
Rising geopolitical risks
Strong Chinese demand
Safe-haven buying
Downside Risks
Persistent inflation
Strong U.S. economic data
Higher bond yields
Continued equity market weakness
Should inflation falter, gold may get a new head of steam and look at another drive toward $5,000.
Conclusion
The overnight recovery in the gold price from a nearly one-week low signals that investors remain cautiously optimistic as they await crucial U.S. inflation data. Though strong employment numbers and the volatility in the stock market have been a drag on prices, expectations of further rate cuts continue to provide support.
It will likely be the inflation numbers and also the Federal Reserve’s comments which will dictate whether gold can hold onto this rebound or once again come under pressure.
