Gold and silver experienced a rebound on Friday, driven by bargain-hunting, following a decline to one-week lows in the prior session. A breach below crucial support levels exacerbated losses, as selling pressure mounted after robust U.S. jobs data diminished expectations for rate cuts. Spot gold experienced a 1% increase, reaching $4,966.83 per ounce by 0127, following a decline of over 3% in the prior session, which brought it to a near one-week low beneath the significant $5,000 threshold.
U.S. gold futures for April delivery increased by 0.7%, reaching a price of $4,985.40 per ounce. Spot silver increased by 2.1% to $76.76 per ounce, following an 11% decline on Wednesday. The U.S. dollar exhibited minimal movement against its peer currencies on Thursday, maintaining stability following the mixed signals presented by the latest U.S. economic indicators. A stronger dollar renders greenback-priced metals costlier for holders of alternative currencies. USD Data released on Wednesday indicated that the U.S. job market commenced 2026 on a stronger basis than anticipated, bolstering the perspective that policymakers might maintain elevated rates for an extended period.
In January, nonfarm payrolls experienced an increase of 130,000 jobs, succeeding a downwardly adjusted rise of 48,000 in December, as the unemployment rate slightly decreased to 4.3%. Data released on Thursday indicated that initial jobless claims decreased to 227,000 for the week ending February 7. In the current context, the Federal Reserve’s monetary policy stance poses a risk to U.S. economic growth, which is being “underwritten” by various policies from the Trump administration, such as tax reductions, according to Fed Governor Stephen Miran, who reiterated the argument for additional interest-rate reductions on Thursday.
Investors are currently anticipating inflation data set to be released later today, seeking further insights into the trajectory of the Federal Reserve’s monetary policy. Spot platinum increased by 1.7% to $2,033.15 per ounce, whereas palladium saw a rise of 1.4% to $1,639.99.