Emre Yumlu 
Precious metals ended the week under mild pressure as investors reassessed risk ahead of key U.S. economic data. A stronger U.S. dollar and ongoing corrections across commodity markets weighed on sentiment, prompting traders to adopt a more cautious stance before the release of U.S. non-farm payrolls. Despite short-term weakness, both gold and silver continue to display notable strength on a weekly basis.
Gold Pulls Back, but Weekly Trend Remains Positive
Spot gold edged lower on Friday, slipping 0.11% to trade around $4,472.57 per ounce. While the intraday decline reflects near-term profit-taking, gold is still on track to close the week with gains of roughly 3%. The broader uptrend remains intact, supported by the fact that bullion reached an all-time high of $4,549.71 on December 26.
Dollar Strength Drives Short-Term Pressure
According to independent analyst Ross Norman, the recent pullback in gold prices is largely the result of profit-taking after a strong rally. However, the dominant factor weighing on prices is the renewed strength of the U.S. dollar ahead of critical employment data.
The dollar has climbed to its highest level in nearly a month as markets await a ruling from the U.S. Supreme Court regarding former President Donald Trump’s emergency tariff authorities. A firmer dollar typically makes gold more expensive for holders of other currencies, limiting short-term upside.
Labor Market Data in Focus
Market participants are closely watching the upcoming U.S. non-farm payrolls report. Economists expect job growth of 60,000, while the unemployment rate is projected to ease from 4.6% to 4.5%. The outcome is likely to influence expectations around the Federal Reserve’s interest rate trajectory, making the data particularly important for precious metals.
Commodity Index Rebalancing Adds to Volatility
Additional pressure has come from the annual rebalancing process within the Bloomberg Commodity Index. As index weightings are adjusted to reflect current market conditions, precious metals can experience temporary selling pressure. Despite this, Norman notes that the broader fundamentals for gold remain constructive.
Long-Term Gold Outlook Still Constructive
HSBC maintains a bullish long-term view, citing elevated geopolitical risks and rising global debt levels. The bank forecasts that gold could reach $5,000 per ounce in the first half of 2026. Expectations of lower interest rates and ongoing economic uncertainty continue to favor non-yielding assets such as gold.
Silver and Other Precious Metals
Silver has shown relative resilience, rising 0.3% to $77.48 per ounce and positioning itself for a weekly gain of more than 5%.
Platinum, after hitting record levels earlier, declined 1.8% to $2,227.11, while palladium traded flat near $1,786.18. Both metals remain on track to preserve their weekly advances.
Overall, while short-term volatility persists, the broader trend across precious metals continues to favor the bulls.
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