Gold rises on softer dollar, yields as markets eye US jobs data; silver steadies

Gold extended gains on Monday, supported by a weaker dollar and softer US Treasury yields, as investors looked ahead to key US jobs data for clues on the Federal Reserve’s policy path, while silver steadied after a record-breaking run last week.

Spot gold rose 0.4% to $4,320.65 an ounce by 0319 GMT.

Bullion has climbed about 64% so far this year.

US gold futures gained 0.6% to $4,354.00 an ounce. The dollar hovered near a two-month low hit last week, making bullion more attractive for overseas buyers, while benchmark 10-year US Treasury yields edged lower.

“Gold is likely to remain well bid into US non-farm payrolls, as evidence of labour market slack would keep front-end yields capped and the dollar weak, supporting a push toward $4,380–$4,440 after a firm rebound from the $4,243 support zone,” OANDA senior market analyst Kelvin Wong said.

Markets remain focused on the Fed’s policy outlook after the US central bank delivered a 25-basis-point rate cut last week in a rare split decision, while signalling a likely pause as inflation remains sticky and the labour outlook is uncertain.

Two Fed officials who dissented said inflation was still too high to justify easier policy.

Investors are currently pricing in two rate cuts next year, with this week’s US jobs report seen as a key test of those expectations.

Non-yielding assets, such as gold, typically benefit in a lower interest rate environment.

India’s move to allow pension funds to invest in gold and silver ETFs could lift institutional participation, ANZ said in a note.

“We believe such regulation can boost confidence and strengthen investor sentiment, supporting higher allocations across portfolios.”

Spot silver rose 0.8% to $62.48 per ounce. It hit a record high of $64.65 on Friday before closing sharply lower.

ANZ flagged downside risks for silver, citing a likely US tariff exemption and stretched valuations versus gold that could trigger fund rotation.

Silver is up 115% year to date on tightening inventories, strong industrial demand, and its inclusion in the US critical minerals list.

Spot platinum lost 0.2% to $1,741.82, while palladium firmed 0.1% to $1,502.29 per ounce.