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Gold, silver climb as US yields fall on softer retail sales

Gold and silver climbed as U.S. Treasury yields fell, reflecting signs of a softening economy and boosting investor demand for safe-haven metals ahead of key jobs and inflation data. Rising geopolitical concerns also drove strong inflows into Indian gold ETFs, outpacing equity fund investments for the first time.

February 11, 2026

Ishaan Arora/Reuters

Gold, silver climb as US yields fall on softer retail sales

A 100-gram gold bar displayed inside a Comptoir national de l'Or store in Paris, France, February 3, 2026.

Benoit Tessier/Reuters

Gold and silver prices rose on Wednesday as U.S. Treasury bond yields fell after data showed December retail sales growth stalled, signalling a softening economy ahead of key jobs data.


FUNDAMENTALS


Spot gold <XAU=> edged 0.3% higher to $5,038.73 per ounce by 0059 GMT.


U.S. gold futures <GCcv1> for April delivery gained 0.6% to $5,060.60 per ounce.


Spot silver <XAG=> was up 1% at $81.49/oz, after falling more than 3% in the previous session.


U.S. yields fell on Tuesday after a raft of data suggested the economy may be softening, giving the U.S. Federal Reserve more cushion to cut interest rates. [US/]


Falling yields reduce the cost of holding metals and often come with macro signals that favour them.


U.S. retail sales were unexpectedly unchanged in December as households scaled back spending on motor vehicles and other big-ticket items, potentially setting consumer spending and the economy on a slower growth path heading into the new year.


Federal Reserve Bank of Cleveland President Beth Hammack, however, said on Tuesday that the U.S. central bank faces no urgency to change the setting of interest rates this year amid a "cautiously optimistic" outlook for economic activity.


Investors expect at least two 25-basis-point rate cuts in 2026, with the first one expected in June. Non-yielding bullion tends to do well in low-interest-rate environments. FEDWATCH


Investors await the non-farm payrolls report for January, due later in the day, and inflation data on Friday for more cues on the Fed's monetary policy path.


Indian investors piled into gold exchange-traded funds in January as prices soared amid rising geopolitical risks, surpassing flows into equity funds for the first time, industry data showed on Tuesday.


Spot platinum <XPT=> added 0.6% to $2,098.78 per ounce, while palladium <XPD=> rose 0.2% to $1,712.25.

-Ishaan Arora/Reuters

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