Precious metals soar as Dollar dips and global markets rally
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Gold and silver extended their gains on Monday amid a weaker dollar, as investors awaited a key U.S. jobs report later this week to gauge the trajectory of interest rates.
Spot gold rose 1.4 percent to $5,029.09 per ounce by 00:37 GMT, following a nearly four percent gain on Friday.
U.S. gold futures for April delivery rose 1.4 percent to $5,051.0 per ounce.
Spot silver climbed 2.5 percent after a 10 percent surge in the previous session.
The dollar dropped to its lowest level since February 4th, making dollar-denominated metals cheaper for foreign buyers.
Asian stock markets surged to their highest levels following the sweeping election victory of Japan’s Prime Minister, Sanae Takaichi, raising expectations of further easing policies, while relief prevailed among Wall Street investors after the recent recovery.
U.S. Treasury Secretary Scott Bessent said on Sunday that he does not expect the Federal Reserve to quickly reduce its balance sheet, even with Kevin Warsh—who has criticized the Fed’s bond purchases—being nominated for the Fed’s chairmanship.
San Francisco Fed President Mary Daly said on Friday that she believes one or two additional interest rate cuts are needed to address weakness in the labor market.
Investors expect at least two 25-basis-point rate cuts in 2026, with the first anticipated in June.
Investors are awaiting the January non-farm payrolls report, scheduled for release on Wednesday, for further clues on the Fed’s monetary policy path.
The report, which was due last week, was delayed by a partial government shutdown that lasted four days but has now ended.
Iranian Foreign Minister Abbas Araghchi said on Sunday that recognizing Iran’s right to enrich uranium is crucial for the success of nuclear talks with the United States.
American and Iranian diplomats held indirect talks in Oman on Friday, aiming to revive diplomatic efforts amid increased U.S. naval reinforcements near Iran.
As for other metals, spot platinum rose 1.8 percent to $2,134.18 per ounce, while palladium increased 1.8 percent to $1,737.75