Gold Price Rebound Sold as USD Index Hits New 2026 Highs

The US dollar index has reached new highs in 2026, which is seen as bearish news for gold prices. The USD Index broke above its May 2025 high and is still in a rally phase, with plenty of room to run.

Last week's softer-than-expected inflation report was expected to boost gold prices, but the metal failed to hold onto gains. Core PCE rose 3.0 percent from a year earlier against 3.3 percent expected, and October hike odds fell from about 70 percent earlier in the week to about 37.

The gold price jumped to $4,251 on the release but gave back those gains as yields and the dollar recovered. Today's attempt to rally reached about $4,214 before fading again.