Why Gold and Silver Prices Are Rising
A key factor supporting precious metals was the weakening US dollar, which fell to a nearly two-week low. This made dollar-denominated gold and silver more attractive to foreign investors.
Additional support for the market came from the fall in 10-year US Treasury yields, which fell to a nearly one-month low following weak US retail sales data. Lower yields reduce the opportunity cost of holding non-yielding assets like gold.
Investors are also focusing on the US Department of Labor's employment report, which may show a slowdown in job creation. Non-farm payrolls are expected to increase by 70,000, and the unemployment rate will remain at 4.4%, although wage growth may slow.
Furthermore, a revision to annual employment data is expected, which could indicate that the US economy created significantly fewer jobs than previously thought. This exacerbates expectations of further Fed rate cuts, which traditionally supports precious metals prices.
Against this backdrop, markets are pricing in at least two Fed rate cuts in 2026. Amid a more accommodative monetary policy, gold and silver retain their status as safe haven assets and remain attractive to investors.
Recall that the price of gold recently exceeded $5,000 per ounce again, as investors returned to the market after sharp volatility and a significant decline in late January.
