Markets currently expect three 25-basis-point rate cuts this year, according to CME’s FedWatch Tool
Published Fri, Feb 20, 2026 · 11:26 AM
[BENGALURU] Gold prices edged lower on Friday (Feb 20) as the US dollar firmed to a near one-month high, while investors awaited a key inflation report due later in the day for more cues on US monetary policy trajectory.
Spot gold dipped 0.1 per cent to US$4,995.91 per ounce by 9.49 am.
US gold futures for April delivery were up 0.3 per cent at US$5,013.60.
The US dollar was poised to cap its strongest weekly performance since October, buoyed by a run of better-than-expected economic data, a more hawkish Federal Reserve outlook and as tensions between the US and Iran kept markets on edge.
Mainland Chinese, Hong Kong, Singapore and Taiwan markets were closed for the Chinese New Year holidays, which means low volumes and possibly volatile moves, traders said.
Investors awaited the Personal Consumption Expenditure (PCE) data, the Fed’s preferred inflation gauge, for more cues on US monetary policy. Non-yielding bullion tends to do well in low-interest-rate environments.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Markets currently expect three 25-basis-point rate cuts this year, according to CME’s FedWatch Tool.
Goldman Sachs said in a note that it expects significant upside risks to its gold end-2026 price forecast of US$5,400 on further private sector diversification when expressed through call-option structures.
It also said that it continues to see the medium-term trajectory for gold prices as upward, potentially with elevated volatility.
US President Donald Trump warned Iran on Thursday that it must make a deal over its nuclear programme or “really bad things” will happen, and set a deadline of 10 to 15 days, drawing a threat from Tehran to retaliate against US bases in the region if attacked.
Spot silver eased 0.1 per cent to US$78.29 per ounce.
Spot platinum edged 0.3 per cent down to US$2,064.27 per ounce, while palladium lost 0.5 per cent to US$1,677.19. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
