Dollar rises, gold and silver trend downward

The strong employment growth shown by the US economy in January reduced hopes for near-term interest rate cuts in the markets, while the dollar gained value. These developments put pressure on gold and silver, and prices for both precious metals retreated.

Spot gold fell 0.4% to $5,058.64 per ounce after gaining more than 1% in the previous session. Spot silver dropped 1.4% to $82.87 per ounce after rising 4% on Wednesday.

US DOLLAR STRENGTHENED, MARKETS FOCUSED ON INFLATION

The rise in the US dollar index accelerated following better-than-expected employment data. The unexpected increase in employment in January and the drop in the unemployment rate to 4.3% demonstrated the strength of the American labor market. This picture brought up expectations that the US Federal Reserve (Fed) might keep interest rates steady for some time. On the other hand, updated figures for previous months raised questions about the strength of the labor market; as the 584 thousand employment increase projected for 2025 fell to 181 thousand after the revision.

Investors have now turned their eyes to the weekly jobless claims to be announced on Thursday and especially the inflation data to be shared on Friday. These data will be decisive for the steps the Fed will take in the coming period.

On the other hand, there is price volatility in precious metals as well. While spot platinum fell 1% to $2,110.63 per ounce, it was observed that the price of palladium increased by 0.4% to $1,707.17 per ounce.

A notable statement also came from the recent meeting between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. Trump stated that negotiations regarding Iran would continue, but that no definitive agreement had been reached on this matter yet.

Global markets continue to seek direction under the influence of macroeconomic data to be announced in the US and geopolitical developments. In particular, inflation data that will clarify the Fed's monetary policy line will continue to remain on investors' radar.

News Source: 12punto