Gold Shines Again Above $5,000 and Silver Jumps as the Dollar Declines
Gold and silver prices continued to achieve strong gains at the beginning of trading on Monday, supported by the decline of the U.S. dollar to its lowest levels in several days, amid a prevailing sense of anticipation in the markets ahead of the upcoming U.S. jobs report, which could shape the Federal Reserve's monetary policy in the coming phase.
Gold rose in spot transactions by 1.4% to reach $5029.09 per ounce by 00:37 GMT, after recording a jump of nearly 4% in last Friday's session.
U.S. gold futures for April delivery also increased by 1.4% to $5051.0 per ounce, according to Reuters data.
In the same context, silver continued its strong performance, rising in spot transactions by 2.5%, following sharp gains of 10% in the previous session, benefiting from the weakness of the U.S. dollar, which made dollar-denominated metals more attractive to buyers outside the United States.
The U.S. dollar recorded a decline to its lowest level since February 4, providing additional support for precious metal prices, as investors' expectations increase regarding the Federal Reserve's direction towards easing monetary policy during the year 2026.
Regarding monetary expectations, U.S. Treasury Secretary Scott Piesen stated that he does not expect the Federal Reserve to quickly move to reduce its balance sheet, even with the nomination of Kevin Warsh, known for criticizing bond-buying policies, for the position of head of the U.S. central bank.
On her part, the President of the San Francisco Federal Reserve Mary Daly indicated that the U.S. economy may need one or two additional rate cuts to address the weakness in the labor market.
Investor bets currently show expectations of at least two cuts in U.S. interest rates during the year 2026, by 25 basis points for each cut, with the first cut likely to begin in June.
This week, market attention is directed towards the non-farm payroll report for January, scheduled for release on Wednesday, after being postponed last week due to a partial government shutdown that lasted four days, and the report is viewed as a critical indicator for the Federal Reserve's monetary policy path.
In global markets, Asian stock markets recorded strong gains to reach their highest levels, following the overwhelming electoral victory of Japan's Prime Minister Sanai Takayuchi, which boosted expectations for more accommodative fiscal and monetary policies.
There was also a sense of relief on Wall Street following the recent recovery wave.
As for other precious metals, platinum rose in spot transactions by 1.8% to $2134.18 per ounce, and palladium increased by 1.8% to $1737.75 per ounce.
With the decline of the dollar and increasing expectations for more flexible monetary policies, precious metal markets remain dependent on upcoming economic data, particularly U.S. labor market indicators, which may play a crucial role in determining price trends in the coming period.
