Dollar Rebounds, Gold Falls on Hawkish Fed Comments

Cleveland and Dallas Fed officials signal Fed could be on hold for some time

Published on Feb. 10, 2026

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The dollar index recovered from early losses on Tuesday, finishing up 0.01%, as hawkish comments from Cleveland Fed President Beth Hammack and Dallas Fed President Lorie Logan offset weaker-than-expected U.S. economic data. Meanwhile, gold and silver prices retreated, with April COMEX gold closing down 0.95% and March COMEX silver down 2.25%.

Why it matters

The dollar's rebound and precious metals' decline reflect the market's reaction to the Fed's potential policy path. Hawkish comments from regional Fed presidents suggest the central bank may be on hold for some time, contrary to expectations of further rate cuts this year. This impacts the outlook for the dollar, interest rates, and safe-haven assets like gold and silver.

The details

The dollar index initially moved lower on Tuesday after weaker-than-expected Q4 employment cost index and December retail sales data bolstered expectations of Fed easing. However, the dollar recovered due to hawkish comments from Hammack and Logan. Hammack said the Fed could be on hold 'for quite some time,' while Logan said it would take 'material' weakness in the labor market for her to support more rate cuts. Gold and silver prices fell as the hawkish Fed comments pressured precious metals. Exchanges also raised margin requirements, leading to long position liquidation.

  • On Tuesday, the dollar index finished up 0.01%.
  • The U.S. Q4 employment cost index rose 0.7% q/q, weaker than the 0.8% q/q expected.
  • U.S. December retail sales were unchanged m/m, weaker than the expected 0.4% m/m increase.
  • Cleveland Fed President Beth Hammack made her comments on Tuesday.
  • Dallas Fed President Lorie Logan made her comments on Tuesday.

The players

Beth Hammack

President of the Federal Reserve Bank of Cleveland.

Lorie Logan

President of the Federal Reserve Bank of Dallas.

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What they’re saying

“Rather than trying to fine-tune the funds rate, I'd prefer to err on the side of patience as we assess the impact of recent rate reductions and monitor how the economy performs. Based on my forecast, the Fed could be on hold for quite some time.”

— Beth Hammack, President, Federal Reserve Bank of Cleveland (Barchart)

“It would take 'material' weakness in the US labor market for her to support more interest rate cuts.”

— Lorie Logan, President, Federal Reserve Bank of Dallas (Barchart)

The takeaway

The dollar's rebound and precious metals' decline reflect the market's shifting expectations around the Fed's policy path. Hawkish comments from regional Fed presidents suggest the central bank may be on hold for some time, contrary to prior expectations of further rate cuts in 2026. This impacts the outlook for the dollar, interest rates, and safe-haven assets like gold and silver.