Gold price pushes higher as US data boosts case for interest rate cuts

Pound, gold and oil prices in focus: commodity and currency check, 11 February 

Pedro Goncalves · Finance Reporter, Yahoo Finance UK

Wed 11 February 2026 at 6:26 pm GMT+9 4 min read

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GC=F

+0.91%

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Gold (GC=F)

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5,077.00 +46.00 (+0.91%)

As of 4:25:25 GMT-5. Market open.

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Gold futures (GC=F) climbed 0.9% to $5,077.20 a troy ounce, while spot prices rose 0.2% to $5,055.34 at the time of writing.

A batch of US data pointed to a cooling in economic momentum, fuelling expectations that the Federal Reserve could have greater latitude to ease monetary policy. Because gold (GC=F) offers no income, declining yields tend to enhance its appeal relative to interest bearing assets.

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“Yields being lower are obviously supportive of gold today… After soft retail sales numbers, there’s the expectation that perhaps, further and deeper rate cuts may be needed more imminently than previously thought,” said Kyle Rodda, senior market analyst at Capital.com.

Markets are now factoring in at least two reductions of 25 basis points in 2026, with June seen as the most likely starting point.

Investors are awaiting January’s non-farm payrolls report, scheduled for release later today after being postponed from last week. Kevin Hassett, director of the National Economic Council, played down concerns about the labour market earlier this week. “One shouldn’t panic,” he told CNBC on Monday. “You should expect slightly smaller job numbers.”

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Economists polled expect the US economy to have added 70,000 jobs in January, compared with 50,000 the previous month.

“Moves of more conviction from either gold or the dollar may be reserved until after the NFP release, with US jobs data likely to factor into the Fed’s interest rate trajectory. Any softness in the jobs data for January could help gold’s rebound efforts,” said Tim Waterer, chief analyst at KCM, in a note.

Oil (BZ=F, CL=F)

Oil prices climbed on Wednesday as fragile negotiations between Washington and Tehran sustained geopolitical risk in the Middle East, while improving demand signals from India helped offset concerns about excess supply.

Brent crude (BZ=F) futures gained 1.1% to $69.55 a barrel, while West Texas Intermediate (CL=F) rose 1.2% to $64.72 at the time of writing.

“Oil retains a bullish tail-risk bid as US-Iran talks continue but remain fragile, keeping the Strait of Hormuz risk premium supported amid ongoing sanctions pressure, tariff threats tied to Iranian trade, and heightened US regional military posture,” LSEG analysts wrote in a report.

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Traders pointed to a narrowing surplus after the market digested additional barrels that weighed on prices in the final quarter of 2025. The shift has coincided with firmer buying interest from Asia.

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“With mainstream oil on water returning to normal levels and demand for it in India rising, oil prices are likely to remain supported in the near term,” Vortexa market analyst Xavier Tang said.

Indian refiners have stepped back from purchases of Russian crude as New Delhi seeks to secure a trade agreement with Washington, prompting a rise in imports from suppliers in the Middle East and West Africa.

Pound (GBPUSD=X, GBPEUR=X)

Sterling pushed higher against its major peers on Wednesday, reversing the previous session’s losses as a softer dollar and easing concerns over domestic politics underpinned the currency.

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1.3697 +0.0055 (+0.41%)

As of 9:35:04 GMT. Market open.

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The pound was up 0.4% against the dollar at $1.3683 and up 0.1% against the euro at €1.1480.

The US dollar index (DX-Y.NYB), which measures the currency against a basket of six major peers, slipped 0.2% to 96.60.

Lee Hardman, senior currency analyst at MUFG, told Reuters that reports from Labour sources suggested there was significant resistance within the party to mounting a leadership challenge before May’s local elections. “A development that should help to reduce the risk of a sharper pound selloff in the near-term,” he said.

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Michael Pfister, forex analyst at Commerzbank, said political uncertainty continued to cast a shadow despite signs of economic improvement.

"Nevertheless, it remains questionable whether Starmer will still be prime minister by the end of the year, despite winning the 2024 election with a strong result and setting out to ensure stability,” he said, pointing to tentative recovery in the UK economy and easing inflation.

“The pound is currently suffering from uncertainty, and this is likely to continue until the matter is resolved sustainably,” he added.

In equities, the FTSE 100 (^FTSE) was higher on Wednesday morning, up 0.2% to 10,375 points.

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