Why gold and silver prices slipped after stronger US jobs data

Gold and silver prices retreated on Thursday (February 12) as a firmer US dollar and resilient American labour market data reduced expectations of near-term interest rate cuts by the Federal Reserve. Investors now await key US inflation figures due on Friday (February 13) for signals on the policy trajectory.

Price action

Spot gold fell 0.4% to $5,058.64 per ounce by 0134 GMT, giving back part of a more than 1% gain from the previous session. US gold futures for April delivery slipped 0.3% to $5,080.00 per ounce.

Spot silver dropped more sharply, down 1.4% at $82.87 per ounce, after surging nearly 4% an ounce on Wednesday (February 11).

Dollar and rates driving sentiment

The US dollar index strengthened for a second consecutive day, extending gains after January’s employment report surprised on the upside. A stronger dollar typically weighs on precious metals by making them more expensive for holders of other currencies.

US job growth accelerated unexpectedly in January and the unemployment rate edged down to 4.3%, suggesting the labour market remains stable. The data reinforced market bets that the Fed may keep rates unchanged for longer rather than moving quickly toward easing.

At the same time, economists noted that revisions showed the US added about 181,000 jobs in 2025, far below an earlier estimate of 584,000, indicating the headline strength may overstate underlying momentum.

A recent Reuters poll expects the Fed to hold rates through Chair Jerome Powell’s term ending in May, with a possible cut in June under a new leadership. Some economists have cautioned that policy could become more accommodative depending on who succeeds Powell.

Investors will now scrutinise weekly US jobless claims on Thursday (February 12) and January inflation data on Friday (February 13) for further guidance.

Geopolitics in the background

Geopolitical risks remain on the radar. After meeting Israeli Prime Minister Benjamin Netanyahu, US President Donald Trump said there was no “definitive” agreement on how to proceed with Iran, though he signalled that negotiations would continue.

Gold has tended to find support during periods of heightened geopolitical uncertainty.

Could gold reach $6,000 an ounce?

Ross Maxwell, Global Strategy Operations Lead at VT Markets, said a move to $6,000 per ounce would require “crisis-like conditions.”

“That would mean roughly a 20% jump from current levels after an already strong run over the past 18–24 months,” he noted. “You would likely need a combination of sharp dollar weakness, aggressive rate cuts, sustained central bank buying, renewed inflation fears, and a major geopolitical or financial shock.”

Maxwell added that while structural trends such as de-dollarisation, persistent inflation and reserve diversification could support higher prices over time, a near-term push to $6,000 an ounce looks unlikely without a significant global disruption.

What the jewellery market is seeing

Beyond financial markets, demand patterns in India’s jewellery sector are evolving.

Dishi Somani, Founder of Dishi’s Designer Jewellery, said buyers are becoming more intentional and design-focused rather than purely price-driven.

“Consumers are choosing versatile, lightweight pieces that work for both daily wear and special occasions,” she said, pointing to rising interest in diamond jewellery and contemporary interpretations of traditional motifs.

She added that customised designs — including initials and bespoke detailing — are gaining traction as buyers seek more personal expression. Online research has also become a bigger part of the purchase journey, with customers comparing materials, craftsmanship and brand credentials before buying.

-With Reuters inputs