Gold and silver continued to rise on Monday as the dollar experienced a decline, while investors looked ahead to an important U.S. labor market report scheduled for later in the week to assess the direction of interest rates. Spot gold increased by 1.4% to $5,029.09 per ounce as of 0037, following a nearly 4% rise on Friday. U.S. gold futures for April delivery increased by 1.4%, reaching $5,051.0 per ounce. Spot silver experienced an increase of 2.5%, following a notable rise of 10% in the preceding session.
The U.S. dollar has reached its lowest point since February 4, resulting in a decrease in the price of dollar-denominated metals for international purchasers. Asian stock markets surged as a decisive victory for Japanese Prime Minister Sanae Takaichi sparked enthusiasm for additional reflationary measures, while investors expressed broad relief at Wall Street’s last-minute recovery. U.S. Treasury Secretary Scott Bessent stated on Sunday that he does not anticipate the Federal Reserve to act swiftly in reducing its balance sheet, even with Fed chief nominee Kevin Warsh, who has expressed criticism of the U.S. central bank’s bond purchasing activities.
San Francisco Fed President Mary Daly stated on Friday that she believes one or two additional interest rate cuts may be necessary to address the weakness in the labor market. Market participants anticipate a minimum of two 25-basis-point reductions in interest rates in 2026, with the initial cut projected for June. Non-yielding bullion typically performs favorably in environments characterized by low interest rates. Investors are anticipating the nonfarm payrolls report for January, scheduled for release on Wednesday, to gain further insights into the Federal Reserve’s monetary policy trajectory. The report experienced a delay from the previous week as a result of a four-day partial government shutdown, which has now concluded.
Foreign Minister Abbas Araqchi stated on Sunday that the acknowledgment of Iran’s entitlement to enrich uranium is essential for the success of nuclear negotiations with the U.S. American and Iranian diplomats engaged in indirect discussions in Oman on Friday, with the objective of revitalizing diplomatic efforts in the context of a U.S. naval buildup in proximity to Iran. Spot platinum increased by 1.8% to $2,134.18 per ounce, whereas palladium also saw a rise of 1.8% to $1,737.75.