Gold Rejected by Hawkish Data as USD Index Hits New 2026 Highs

The USD Index has reached new highs in 2026, and this hawkish shift in market sentiment is affecting gold prices. On Thursday, gold jumped to $4,251 on the release of jobless claims data but quickly gave back its gains as yields and the dollar recovered.

The 10-year Treasury yield touched 5.30 percent, its peak since 2007, while gold futures settled at $4,186.70, up only $7 from the previous day's close. Spot gold prices continued to fall throughout the day, ending near $4,157.

Despite this initial rally, gold failed to sustain gains on what should have been bullish news for the metal. Przemysław K. Radomski, CFA, notes that this is a key takeaway from recent market movements.