Editor’s Note
This article discusses the recent rise in gold and silver prices, driven by a softer US dollar and falling Treasury yields. Market focus remains on upcoming US jobs data for clues on the Federal Reserve’s policy path.
Gold and silver prices moved higher in early trading as investors reacted to a weaker US dollar and lower US Treasury yields. Market participants are closely tracking the release of the US nonfarm payrolls data, which is expected to provide signals about the strength of the labor market and the future path of Federal Reserve interest rates. Expectations of slower job growth and possible rate cuts have supported demand for precious metals. Analysts say currency movement, bond yields, and policy outlook remain key drivers for gold and silver prices.
Gold and silver prices are rising as the US dollar trades near two-week lows and US 10-year Treasury yields fall to near one-month lows. Lower yields reduce the opportunity cost of holding non-yielding assets such as gold. Investors are also waiting for US nonfarm payrolls data, which could influence Federal Reserve rate decisions. Expectations of at least two rate cuts in 2026, as shown by the CME FedWatch tool, are supporting demand for precious metals. Analysts say currency weakness and bond yield movement remain the main drivers.
Precious metals market analysts say that recent price gains are linked to expectations of slower job growth and potential interest rate cuts.
Carsten Menke, Julius Baer
Giovanni Staunovo, UBS
Analysts add that bullion tends to perform well in a low-interest rate environment because it does not provide yield, and lower rates reduce the cost of holding it.
Gold prices gained on Wednesday. Spot gold rose 0.5% to $5,048.27 per ounce by 0831 GMT. US gold futures for April delivery increased 0.8% to $5,072.60 per ounce.
The US dollar edged down to near two-week lows. A weaker dollar makes gold priced in dollars more affordable for overseas buyers. This supports demand.
The benchmark US 10-year Treasury bond yields also fell to near one-month lows. Data showed a dip in core US retail sales in December. There were also downward revisions to November and October figures. Lower yields reduce the opportunity cost of holding non-yielding assets such as gold.
Analysts point to expectations of slower job growth and possible rate cuts.
The Labor Department will release nonfarm payrolls data at 0830 ET (1330 GMT). A Reuters survey of economists expects about 70,000 jobs added last month. In December, 50,000 jobs were added. The unemployment rate is expected to remain at 4.4%. Annual wage growth is also expected to cool.
The Bureau of Labor Statistics is expected to revise its annual benchmark. It may show that the economy created 911,000 fewer jobs in the 12 months through March 2025 than previously estimated.
Spot silver rose 3.4% to $83.40 per ounce after falling more than 3% in the previous session. Platinum gained 2.8% to $2,146.07 per ounce. Palladium increased 2.6% to $1,751.79 per ounce.
Market analysts say movements in the dollar, Treasury yields, and rate cut expectations remain key drivers for precious metals prices in the near term.
Investors should closely monitor US nonfarm payrolls data, dollar movement, and Treasury yields. These factors may influence the Federal Reserve’s policy outlook and short-term price trends in gold and silver. Investors may consider their risk profile and long-term strategy before making decisions. Since precious metals react to interest rate expectations and economic data, tracking updates from the Federal Reserve and economic indicators can help guide investment choices.
