Gold, silver extend gains on softer dollar; investors eye US economic data

Gold and silver extended gains on Monday, with the former trading just above the $5,000-per-ounce level as the dollar dipped, while investors awaited key jobs and inflation data due later in the week to gauge U.S. interest rate trajectory.

Spot gold XAU= rose 1.1% to $5,012.76 per ounce by 0502 GMT after a 4% climb on Friday. U.S. gold futures GCv1 for April delivery gained 1.1% to $5,033.80 per ounce.

"This could be the very short-term intraday correlation between the dollar and silver as well as gold (driving the metals up)," said Kelvin Wong, a senior market analyst at OANDA.

The U.S. dollar was at its lowest level since February 4, making greenback-priced metals cheaper for overseas buyers. The yen strengthened after Japanese Prime Minister Sanae Takaichi swept to victory in Sunday's election. USD/MKTS/GLOB

"Bargain-hunting is (also) pushing gold back above the $5,000 level," said KCM chief analyst Tim Waterer.

Investors await monthly reports on employment and consumer prices this week and 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

"Any softness in the jobs data could help gold's rebound efforts. We are not expecting a rate cut from the Fed until mid-year, unless the jobs data really starts to drop off a cliff," Waterer added.

San Francisco Federal Reserve President Mary Daly said on Friday she thinks one or two more interest rate cuts may be needed to counteract weakness in the labour market.

Spot silver XAG= climbed 4.6% to $81.54 per ounce after a near 10% gain in the previous session. It hit an all-time high of $121.64 on January 29.

"Unless silver's able to clear above that key resistance at $92.24, I'm not so convinced in terms of a probability perspective of a medium uptrend," Wong said.

Spot platinum XPT= edged 0.3% lower to $2,090.13 per ounce, while palladium XPD= gained 1% to $1,723.41.

-Reporting by Ishaan Arora in Bengaluru; Editing by Subhranshu Sahu/Reuters