Gold Surpasses $5,000 as Silver Rises Amid Dollar Decline
Gold and silver prices have seen substantial gains at the start of trading this Monday, buoyed by the U.S. dollar's decline to its lowest levels in several days. Market participants are awaiting the upcoming U.S. employment report, which may shape the Federal Reserve's monetary policy in the months ahead.
Gold rose by 1.4% in spot trading, reaching $5,029.09 per ounce at 00:37 GMT, following a nearly 4% surge during Friday's session.
Meanwhile, U.S. gold futures for April delivery also increased by 1.4% to $5,051.00 per ounce, according to Reuters data.
Silver continued its strong performance, climbing 2.5% in spot trading after a significant 10% gain in the previous session. The weakening U.S. dollar has made dollar-denominated metals more appealing to foreign buyers.
The U.S. dollar has dropped to its lowest point since February 4, providing additional support to precious metal prices as investor expectations rise for a potential easing of monetary policy by the Federal Reserve in 2026.
Regarding monetary forecasts, U.S. Treasury Secretary Scott Pison noted that he does not anticipate the Federal Reserve to rapidly reduce its balance sheet, even with the appointment of Kevin Warsh, known for his criticisms of bond-buying policies, to the helm of the central bank.
Additionally, Mary Daly, President of the San Francisco Federal Reserve, indicated that the U.S. economy may require one or two more interest rate cuts to address labor market weaknesses.
Investor expectations currently suggest at least two U.S. interest rate cuts in 2026, each by 25 basis points, with the first cut likely to occur in June.
This week, markets are focused on the non-farm payroll report for January, scheduled for release on Wednesday after being postponed last week due to a four-day partial government shutdown. This report is viewed as a crucial indicator for the Fed's monetary policy trajectory.
On the global markets, Asian stock markets experienced significant gains, reaching record levels following a decisive electoral victory for Japanese Prime Minister Sanai Takayuchi, which has bolstered expectations for more accommodative fiscal and monetary policies.
A sense of relief has also been felt on Wall Street following a recent recovery.
In other precious metals, platinum rose by 1.8% in spot trading, reaching $2,134.18 per ounce, while palladium increased by 1.8% to $1,737.75 per ounce.
With the dollar's decline and rising expectations for looser monetary policy, precious metal markets remain dependent on upcoming economic data, particularly U.S. labor market indicators, which could play a crucial role in determining price movements in the months ahead.
