Gold Surpasses $5,000 as Silver Prices Surge Amid Dollar Weakness
Gold and silver prices experienced notable increases at the start of trading on Monday, buoyed by a drop in the U.S. dollar to its lowest levels in several days. This comes as market participants anticipate the upcoming U.S. jobs report, which may impact the Federal Reserve's monetary policy going forward.
Gold rose by 1.4% in spot transactions, reaching $5029.09 per ounce by 00:37 GMT, following a nearly 4% surge in the previous session on Friday.
Additionally, U.S. gold futures for April delivery also climbed by 1.4% to $5051.0 per ounce, according to Reuters data.
In parallel, silver maintained its upward trajectory, increasing by 2.5% in spot transactions after a substantial 10% rise in the last session. The weakness of the U.S. dollar has made these dollar-denominated metals more appealing to international buyers.
The U.S. dollar fell to its lowest level since February 4, providing further support for precious metal prices as investor expectations grow regarding the Federal Reserve's potential shift towards easing monetary policy in 2026.
Regarding monetary policy outlooks, U.S. Treasury Secretary Scott Piesen indicated that he does not foresee the Federal Reserve quickly reducing its balance sheet, despite the nomination of Kevin Warsh, a critic of bond-buying strategies, for the position of head of the U.S. central bank.
Federal Reserve President Mary Daly suggested that the U.S. economy may require one or two additional rate cuts to address weaknesses in the labor market.
Current investor sentiment indicates expectations of at least two interest rate cuts in the U.S. during 2026, with each cut anticipated to be 25 basis points, the first of which could occur in June.
This week, market focus will be on the non-farm payroll report for January, set to be released on Wednesday after a four-day delay due to a partial government shutdown. This report is viewed as a critical metric for the Federal Reserve's monetary policy direction.
In global markets, Asian stock markets posted significant gains, reaching their highest levels following a decisive electoral victory for Japan's Prime Minister Sanai Takayuchi, which has raised expectations for more supportive fiscal and monetary policies.
Wall Street also showed signs of recovery amid recent market trends.
In other precious metals, platinum saw a rise of 1.8% to $2134.18 per ounce, while palladium increased by 1.8% to $1737.75 per ounce.
With the dollar's decline and growing expectations for more flexible monetary policies, the precious metals market remains sensitive to forthcoming economic data, particularly U.S. labor market indicators, which may significantly influence price trends in the near future.
