Gold and Silver Extend Gains to US$5,038.73 Per Ounce on Softer US Data

Gold and silver prices moved higher on Wednesday (February 11), lifted by a decline in US Treasury yields after weaker-than-expected economic data revived expectations of potential Federal Reserve rate cuts later this year.

As of 0059 GMT, spot gold rose 0.3% to US$5,038.73 per ounce, while US April gold futures advanced 0.6% to US$5,060.60 an ounce. Spot silver climbed 1% to US$81.49 per ounce, rebounding from a decline of more than 3% in the previous session.

Bond Yields Slide as Retail Sales Stall

The uptick in precious metals followed a drop in US bond yields on Tuesday (February 10), after data showed retail sales were flat in December. Economists attributed the stagnation to softer spending on motor vehicles and other big-ticket items, suggesting cooling consumer demand and a potentially slower US growth path heading into 2026.

Lower yields typically support bullion, as they reduce the opportunity cost of holding non-interest-bearing assets such as gold and silver. Market pricing currently indicates expectations of at least two 25-basis-point rate cuts this year, with June widely viewed as the likely starting point.

Fed Signals Cautious Approach

Despite rising market expectations for easing, Federal Reserve policymakers have maintained a cautious stance, reiterating that future decisions will remain guided by incoming economic data.

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Indian Investors Shift Toward Bullion

In India, investor appetite for precious metals strengthened in January amid rising prices and persistent geopolitical uncertainties.

Industry data showed inflows into gold exchange-traded funds (ETFs) nearly matched those into equity funds for the first time, underscoring a clear move toward safe-haven assets. Silver ETFs also recorded a notable rise in assets under management, reflecting broader demand for bullion.

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