Gold and Silver Surge as Dollar Weakens with Eyes on U.S. Economic Data

On Monday, gold and silver continued to gain momentum as the dollar weakened, enhancing their appeal. Spot gold increased by 1.3% to $5,025.97 per ounce by 0650 GMT, following a significant climb on Friday. Similarly, U.S. gold futures for April delivery rose by 1.4% to reach $5,048.30 per ounce.

According to Kelvin Wong, senior market analyst at OANDA, the strengthening of gold and silver is partly driven by the short-term correlation with the dollar. The greenback reached its lowest point since early February, making gold more accessible for international buyers. Additionally, the yen experienced a surge as Sanae Takaichi emerged victorious in Japan's recent election.

Tim Waterer, KCM chief analyst, noted that bargain-hunting is pushing gold back above the $5,000 mark, while investors eagerly await influential employment and consumer price reports. These developments indicate potential interest rate cuts in 2026, possibly starting in June. Meanwhile, spot silver advanced 4.7% to $81.55 per ounce after a notable rise in preceding sessions, though challenges remain at the $92.24 resistance level.