Gold and silver prices moved higher in Asian trading on Wednesday after softer-than-expected U.S. retail sales figures reinforced views that economic momentum may be slowing. Investors are now awaiting the latest U.S. payrolls data for clearer direction.
While precious metals have posted gains this week, trading has remained volatile following a sharp retreat from record highs set in late January. Even with a weaker dollar and softer economic readings, bullion has struggled to stage a sustained recovery. Meanwhile, ongoing geopolitical uncertainty in the Middle East has failed to significantly boost safe-haven demand.
Spot gold climbed 0.6% to $5,052.11 per ounce, while April gold futures rose 0.9% to $5,076.40 as of 01:02 ET (06:02 GMT). Prices remain roughly $600 below their recent peak levels.
Spot silver gained 1.7% to $82.1375 per ounce, and platinum advanced 2.1% to $2,130.63 per ounce.
Softer data pressures dollar, supports metals
Gold and other precious metals slipped modestly on Tuesday but rebounded after U.S. December retail sales came in below expectations.
Analysts at ANZ said gold’s earlier rally had stalled amid concerns the metal had “run too hard, too fast.”
“With speculative positioning now largely washed out of the market, traders are looking for the next catalyst for another run higher. Weak economic data in the US prompted some buying,” ANZ analysts added.
The retail sales figures suggested that consumer spending in the U.S. is beginning to cool, against a backdrop of persistent inflation and strains in the labor market. Continued softness in spending could weigh on overall economic growth.
Expectations that the Federal Reserve might respond with further rate cuts later this year pushed U.S. Treasury yields lower, while the dollar struggled to regain ground after earlier losses. The dollar index slipped another 0.2% in Asian trading.
Payrolls and inflation data ahead
Markets are now focused on the upcoming nonfarm payrolls report, which may provide a clearer picture of labor market conditions. Signs of ongoing weakness would likely fuel speculation about additional monetary easing.
Lower interest rates generally favor gold and other non-yielding assets by reducing the opportunity cost of holding them.
However, uncertainty over the Fed’s policy path remains elevated, particularly after President Donald Trump nominated Kevin Warsh as the next central bank chair. Warsh is widely viewed as less dovish, a perception that has weighed on metals since late January.
Beyond payrolls, attention will also turn to Friday’s consumer price index data. Labor market trends and inflation remain the Federal Reserve’s primary considerations in setting interest rates.
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