Dollar Soars to New Highs as Gold Prices Fail to Rally

The US dollar index has reached new highs for 2026, fueled by hawkish data and rising interest rates. The inflation rate came in lower than expected at 3.0% from a year earlier, down from 3.3% forecasted, which is bullish news for gold.

However, despite the softer-than-expected inflation report, gold prices failed to rally. Instead, they jumped to $4,251 on the release and then gave back their gains as yields and the dollar recovered.

The 10-year Treasury yield touched 5.30%, its peak since 2007, and gold futures settled at $4,186.70, up just $7 from the previous day. Spot gold fell into the close, ending the day lower near $4,157.