Precise Investors Editorial Team
Spot gold gained 1.1% to $5,012.76 per ounce after a 4% jump on Friday
Gold and silver extended gains on Monday, with the former trading just above the $5,000-per-ounce level as the dollar dropped, while investors awaited jobs and inflation data due later in the week to gauge U.S. interest rate trajectory.
Spot gold gained 1.1% to $5,012.76 per ounce by 0502 GMT after a 4% jump on Friday. U.S. gold futures for April delivery added 1.1% to $5,033.80 per ounce.
This could be the very short-term intraday correlation between the dollar and silver as well as gold driving the metals up, said Kelvin Wong, a senior market analyst at OANDA.
The U.S. dollar was at its lowest level since February 4, making dollar-priced metals cheaper for overseas buyers. The yen firmed after Japanese Prime Minister Sanae Takaichi swept to victory in Sunday’s election.
Bargain-hunting is also pushing gold back above the $5,000 level, said KCM chief analyst Tim Waterer.
Investors await monthly reports on employment and consumer prices this week and expect at least two 25-basis-point rate cuts in 2026, with the first one expected in June. Non-yielding bullion tends to do well in low-interest-rate environments.
Any softness in the jobs data could help gold’s rebound efforts. We are not expecting a rate cut from the Fed until mid-year, unless the jobs data really starts to drop off a cliff, Waterer added.
San Francisco Federal Reserve President Mary Daly said on Friday she thinks one or two more interest rate cuts may be needed to counteract weakness in the labour market.
Spot silver jumped 4.6% to $81.54 per ounce after a near 10% gain in the previous session. It hit an all-time high of $121.64 on January 29.
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