Gold prices ended the week on a firm footing, consolidating near historically elevated levels as investors balanced risk appetite with lingering macro uncertainty. February 2026 COMEX gold futures finished Friday at 4,328.30, reflecting a steady weekly advance and reinforcing gold’s role as a strategic hedge amid volatile global market conditions. While equity markets showed mixed performance, demand for defensive assets remained evident.

Weekly Price Action Reflects Cautious Optimism

Over the course of the week, gold traded within a relatively wide range, briefly pushing above the 4,350 level before encountering resistance. The five-day performance showed a net gain of approximately 2.07%, highlighting continued interest despite intermittent pullbacks. Price action suggested that investors were willing to accumulate on dips rather than aggressively chase higher levels, indicating a market in consolidation rather than reversal mode.
Technically, gold remained comfortably above key short-term support zones near 4,280–4,300, reinforcing the view that underlying demand remains intact even as momentum moderated toward the end of the week.

Macro Drivers: Rates, Dollar, and Volatility

Macroeconomic factors remained central to gold’s performance. Expectations around future U.S. Federal Reserve policy played a decisive role, with markets continuing to price in a gradual easing cycle in 2025 should inflation remain contained. Softer expectations for real yields helped limit downside pressure on non-yielding assets such as gold.
At the same time, fluctuations in the U.S. dollar created short-term volatility. Periods of dollar strength capped gains, while pullbacks in the greenback provided room for gold to stabilize. Rising market stress, reflected in elevated VIX readings earlier in the week, also reinforced gold’s appeal as a portfolio diversifier.

Strategic Demand and Global Context

Beyond short-term trading flows, longer-term structural factors continued to support gold prices. Central bank demand, particularly from emerging markets, remained a key pillar of support, as policymakers sought to diversify reserves amid geopolitical fragmentation. Additionally, ongoing geopolitical tensions and concerns over global growth trajectories sustained investor interest in hard assets.
For Israeli and global investors alike, gold’s resilience underscored its relevance in multi-asset portfolios, especially as correlations between equities and bonds have shown signs of instability in recent months.

Looking ahead, the near-term outlook for gold will depend on incoming inflation data, central bank communication, and movements in global bond markets. A sustained break above the 4,350–4,380 resistance zone could open the door to renewed upside momentum, while a rise in real yields may prompt further consolidation. As markets navigate the final weeks of the year, gold is likely to remain sensitive to shifts in risk sentiment, policy expectations, and geopolitical developments.