Gold and silver continue to rise: what is happening on the metals market
9 February 10:54
Gold and silver prices continued to rise on Monday amid a weakening US dollar. Investors are closely watching key US employment and inflation data, which is due to be released later this week and could influence the future trajectory of interest rates. This was reported by "Komersant Ukrainian" with reference to Reuters.
The spot price of gold rose 1.1% to $5,012.76 per ounce as of 05:02 GMT, after jumping nearly 4% on Friday.
US gold futures for April delivery rose 1.1% to $5,033.80 per ounce.
Silver showed even more rapid growth, with its spot price jumping 4.6% to $81.54 per ounce, after rising nearly 10% the day before. At the end of January, silver set a historic high of $121.64 per ounce.
The weakening dollar supports precious metals
The US dollar fell to its lowest level since February 4, making metals denominated in US currency cheaper for foreign buyers. The market received additional support from the strengthening of the Japanese yen after the election victory of Japanese Prime Minister Sanae Takaichi.
“We are seeing a short-term intraday correlation between the dollar, silver, and gold, which is currently pushing metal prices higher,” said OANDA senior market analyst Kelvin Wong.
Analysts also note increased buying on dips.
“The hunt for bargains is also helping gold to reclaim the $5,000 per ounce level,” said Tim Waterer, chief analyst at KCM Trade.
Focus on Fed rates and the labor market
Investors are awaiting the release of monthly reports on employment and consumer prices in the US. Markets are pricing in at least two 25 basis point rate cuts in 2026, the first of which is expected in June.
Since gold does not generate interest income, it usually benefits from low interest rates.
“Any weakness in employment data could support a further recovery in gold. We do not expect the Fed to cut rates until mid-year unless the labor market begins to deteriorate sharply,” Waterer added.
San Francisco Federal Reserve Bank President Mary Daly said that one or two more rate cuts may be needed to support the labor market.
Other precious metals
Platinum fell 0.3% to $2,090.13 per ounce.
Palladium rose 1% to $1,723.41 per ounce.
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