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Gold and silver prices extended their strong rally on Monday, buoyed by a softer U.S. dollar and growing expectations that the Federal Reserve will ease monetary policy as signs of labor market weakness emerge.
Spot gold climbed 1.06% to $5,012.88 per ounce, firmly holding above the psychological $5,000 level after surging nearly 4% in the previous session. U.S. gold futures for April delivery followed suit, rising 1.09% to $5,034.70 per ounce.
Silver outperformed once again, with spot prices jumping 5.05% to $81.62 per ounce, building on an almost 10% rally recorded on Friday. The sharp move highlights renewed investor appetite for precious metals amid shifting macroeconomic expectations.
The rally was supported by a decline in the U.S. dollar, which fell to its lowest level since February 4. A weaker greenback tends to enhance the appeal of dollar-denominated commodities for overseas investors, providing an additional tailwind for bullion prices.
Risk sentiment in global markets was also constructive. Asian equities surged to record highs following the landslide electoral victory of Japanese Prime Minister Sanae Takaichi, fueling expectations of a more accommodative policy stance from Japan. In the U.S., Wall Street investors showed signs of relief after the recent market rally stabilized broader sentiment.
On the policy front, U.S. Treasury Secretary Scott Bisent said on Sunday that he does not expect the Federal Reserve to move aggressively in shrinking its balance sheet, even if Kevin Warsh—known for his critical stance on bond-buying programs—is confirmed as the next Fed chair. Separately, San Francisco Fed President Mary Daly reiterated on Friday that one or two additional interest rate cuts may be warranted, citing evidence of a cooling labor market.
Market participants are now pricing in at least two 25-basis-point rate cuts in 2026, with the first widely expected around June. Attention is firmly focused on the upcoming U.S. non-farm payrolls report for January, scheduled for release on Wednesday, which could offer critical insights into the Fed’s next policy moves. The report had been delayed after a four-day partial U.S. government shutdown that has since ended.
Geopolitical developments also remained on investors’ radar. Iranian Foreign Minister Abbas Araqchi stated on Sunday that recognizing Iran’s right to enrich uranium is essential for the success of nuclear negotiations with the United States. Indirect talks between U.S. and Iranian officials were held in Oman on Friday, coinciding with an increased U.S. naval presence near Iran—adding another layer of uncertainty to global markets.
Elsewhere in the precious metals complex, platinum rose 1.8% to $2,134.18 per ounce, while palladium advanced 1.8% to $1,737.75 per ounce in spot trading, broadly tracking the strength seen across the sector.
