Gold holds above $5,000 as US data bolsters case for rate cuts

Bullion climbed as much as 0.6% after closing lower on Tuesday

Bloomberg

February 11, 2026 / 07:43 IST

Spot gold rose 0.3% to $5,038.66 an ounce as of 8:21 a.m. in Singapore

Gold rose 0.3% to $5,038.66 an ounce after weak US retail sales data
Banks forecast gold could reach $6,000 by year-end amid bullish sentiment
Lower interest rates may further boost gold, which benefits from rate cuts

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Gold rose modestly — consolidating gains above $5,000 an ounce — after weak retail sales in the US supported the case for the Federal Reserve to cut interest rates.

Bullion climbed as much as 0.6% after closing lower on Tuesday. Consumer spending unexpectedly stalled in December, setting the scene for a delayed and highly anticipated January jobs report on Wednesday.

The precious metal surged to a record high above $5,595 an ounce in late January on geopolitical upheaval, attacks on the Fed’s independence and a shift away from traditional assets like currencies and sovereign bonds. But a wave of speculative buying saw the rally get overheated and gold plunged about 13% in two sessions.

It’s since clawed back about half of those losses, and has been trading around $5,000 an ounce this week. Many banks see the rally resuming as the reasons that underpinned its gains are still intact. BNP Paribas SA is backing it to get to $6,000 by the end of the year, while Deutsche Bank AG and Goldman Sachs Group Inc. also have bullish forecasts.

Any further reduction in borrowing costs would be positive for gold, which doesn’t pay interest and benefits from lower rates. President Donald Trump’s selection for Fed Chair, Kevin Warsh, has advocated cutting further. However, Federal Reserve Bank of Cleveland President Beth Hammack said Tuesday that interest rates could be on an extended hold, while officials evaluate incoming data.