Gold and Silver Surge as Dollar Weakens with Eyes on U.S. Economic Data

Gold and silver continued their gains amid a weakening dollar. Investors await U.S. jobs and inflation data to assess interest rate trends. Spot gold rose to $5,025.97, while silver climbed to $81.55. Analysts suggest low rates benefit non-yielding metals, while silver faces resistance at $92.24.

On Monday, gold and silver continued to gain momentum as the dollar weakened, enhancing their appeal. Spot gold increased by 1.3% to $5,025.97 per ounce by 0650 GMT, following a significant climb on Friday. Similarly, U.S. gold futures for April delivery rose by 1.4% to reach $5,048.30 per ounce.

According to Kelvin Wong, senior market analyst at OANDA, the strengthening of gold and silver is partly driven by the short-term correlation with the dollar. The greenback reached its lowest point since early February, making gold more accessible for international buyers. Additionally, the yen experienced a surge as Sanae Takaichi emerged victorious in Japan's recent election.

Tim Waterer, KCM chief analyst, noted that bargain-hunting is pushing gold back above the $5,000 mark, while investors eagerly await influential employment and consumer price reports. These developments indicate potential interest rate cuts in 2026, possibly starting in June. Meanwhile, spot silver advanced 4.7% to $81.55 per ounce after a notable rise in preceding sessions, though challenges remain at the $92.24 resistance level.