By: Economy Middle east

Gold and silver prices continued their upward trend on Monday, with gold maintaining its position slightly above the $5,000-per-ounce threshold. A weakening U.S. dollar fueled the rally as investors shifted their focus to Wednesday’s high-stakes employment and inflation data. These data points are considered essential for market participants attempting to predict the future path of U.S. interest rates. Spot gold increased by 1.41 percent to reach $5,036.47 per ounce, following a robust 4 percent gain on Friday, while U.S. gold futures for April delivery rose 1.48 percent to settle at $5,053.54 per ounce.

Gold rates in the UAE saw a broad upward trend today. Leading the gains, 22-carat gold rose by AED8.50 to reach AED562.50, while 24-carat gold climbed AED9.25 to settle at AED607.50. Other variants followed suit: 21K increased to AED539.25, 18K reached AED462.25, and 14K rose to AED360.50.

Monetary shifts and metals volatility

The U.S. dollar hit its lowest point since February 4, a move that typically makes metals priced in the greenback more affordable for international investors. Meanwhile, the Japanese yen gained strength following the electoral victory of Prime Minister Sanae Takaichi on Sunday. In the United States, investors are anticipating at least two 25-basis-point interest rate reductions in 2026, with the first likely occurring in June. This outlook supports bullion, as non-yielding assets generally perform better when interest rates are low. San Francisco Federal Reserve President Mary Daly contributed to this sentiment on Friday, suggesting that additional rate cuts might be necessary to address a softening labor market.

Silver saw a dramatic rise on Monday, climbing 5.49 percent to $82.07 per ounce, building on a nearly 10 percent gain from the prior session. While the metal remains below its all-time peak of $121.64 recorded on January 29, it continues to show significant volatility and strength. In the platinum group metals sector, results were mixed; spot palladium increased by 1.37 percent to $1,705.00, whereas spot platinum saw a marginal decline of 0.05 percent, ending the session at $2,100.00 per ounce.

Global momentum and market resilience

The Monday market rally was heavily influenced by the landslide victory of Prime Minister Sanae Takaichi’s ruling coalition in Japan’s weekend snap elections, which secured a two-thirds majority and fueled expectations for expansionary fiscal policies. While the Nikkei 225 surged past 57,000 points for the first time, the yen’s appreciation added further downward pressure to the U.S. Dollar Index, which fell to its lowest level in nearly a week.

Traders are now pivotally focused on the January jobs report due this Wednesday and the Friday inflation data, as recent labor market softening—including a rise in initial jobless claims to 231,000—has reinforced the “dovish” case presented by Mary Daly.

Adding to the fundamental support for bullion, new data from the China Gold Association and the People’s Bank of China confirmed that Beijing extended its gold buying streak for a 15th consecutive month in January, underscoring a structural shift toward physical asset accumulation.

In the silver market, the surge toward $82 reflects a broader “bargain hunting” trend following the liquidation event of late January, with domestic silver rates in major hubs like India rising over 4 percent on Monday alone. Geopolitical headlines also provided a cautious floor for prices, as markets monitored the continuation of U.S.-Iran talks in Oman aimed at de-escalating regional military tensions.