Gold, silver extend gains on Monday,

Gold and silver extended gains on Monday, with spot gold trading above the $ 5,000-per-ounce mark as a weaker US dollar and expectations of interest rate cuts supported precious metals ahead of key US jobs and inflation data due this week.

Spot gold rose 1.1 per cent to $5,012.76 per ounce by 0502 GMT, following a 4 per cent surge on Friday, while April US gold futures gained 1.1 per cent to $5,033.80. The dollar fell to its lowest level since February 4, making dollar-priced metals cheaper for overseas buyers. The Japanese yen strengthened after Prime Minister Sanae Takaichi secured a decisive victory in Sunday’s election.

Market analysts said the short-term inverse correlation between the dollar and precious metals, alongside bargain hunting, helped push gold back above the $5,000 level. Investors are closely watching US employment and consumer price reports this week to assess the Federal Reserve’s policy path, with markets pricing in at least two 25 basis point rate cuts in 2026, the first expected in June. Bullion typically benefits from lower interest rate environments.

San Francisco Federal Reserve President Mary Daly said on Friday that one or two additional rate cuts may be needed to address weakness in the labour market.

Spot silver climbed 4.6 per cent to $81.54 per ounce after rising nearly 10 per cent in the previous session, though it remains below its all-time high of $121.64 reached on January 29. Analysts cautioned that silver would need to break above key resistance levels to confirm a sustained medium-term uptrend.

Platinum edged down 0.3 per cent to $2,090.13 per ounce, while palladium rose 1 per cent to $1,723.41.

Attribution: Reuters