Gold continued to rise on Monday, bolstered by a declining dollar and lower U.S. Treasury yields. Investors are anticipating important U.S. jobs data for insights into the Federal Reserve‘s policy direction. Meanwhile, silver stabilized after its record-setting performance last week.
Spot gold increased as the U.S. dollar and Treasury yields softened, with investors looking forward to key non-farm payroll data that may indicate further easing from the Federal Reserve. Meanwhile, silver rose by 1.26 percent to $62.74, although it was down 2.41 percent from its recent highs, showing a monthly gain of 24.82 percent and an annual increase of over 105 percent. The gold-silver ratio relaxed to 67.61:1, suggesting silver’s relative strength in diversified portfolios.
On Monday, gold spot prices increased by 1.03 percent to $4,344.81 per troy ounce. U.S. gold futures also advanced by 1.12 percent to $4,376.65 per ounce, driven by positive market sentiment as the dollar index remained close to its two-month lows. Year-to-date, bullion has risen by about 62-64 percent, approaching October’s record high of $4,381.
In the UAE, gold rates rose slightly on Monday. The price of 24-carat gold increased by AED3.25 to AED521.25, while 22-carat gold went up AED3.00 to AED482.75. Additionally, 21-carat gold saw a gain of AED2.75, reaching AED462.75. Meanwhile, 18-carat gold gained AED2.50 to reach AED396.75, and 14-carat gold rose by AED2.00 to AED309.50.
A softer dollar enhances gold’s appeal to foreign buyers, while benchmark 10-year U.S. Treasury yields dipped slightly, reducing the opportunity cost of holding non-yielding bullion. Recent U.S. jobless claims hit a two-month high for the week ending December 6, fueling bets on two Fed rate cuts in 2026 despite the central bank’s projection of one.
Federal Reserve Chair Jerome Powell’s recent comments ruled out rate hikes, following the third 25-basis-point cut of 2025, with a $40 billion Treasury bill purchase plan to ease money market pressures. Markets anticipate the December 15 non-farm payrolls report to clarify labor market slack, potentially pushing gold toward $4,380-$4,440 if data disappoints.
Analysts forecast gold rebounding from $4,243 support toward higher ranges on weak jobs data suppressing yields and the dollar. Trading Economics projects gold at $4,311 by quarter-end and $4,569 in 12 months, driven by global easing and geopolitical tensions.
Experts note structural supports like central bank buying—China added to reserves—and Asian demand flows, countering any Fed hawkishness. Profit-taking lingers after record rallies, but safe-haven flows persist amid U.S.-China trade talks and regional conflicts.
Gold’s rally aligns with cooling U.S. inflation at 3 percent and Fed funds at 3.75 percent, contrasting with equity pullbacks—S&P 500 down 1.07 percent. In India, MCX gold futures hovered around Rs 118,995 per 10 grams recently, while Delhi silver rates reached Rs 198,000 per kg.
Source: Economymiddleeast