Gold, silver rise ahead of key US jobs data

Gold and silver prices climbed on Wednesday (February 11), buoyed by a drop in US Treasury yields after weaker-than-expected economic data revived bets on eventual interest-rate cuts by the Federal Reserve.

By 0059 GMT, spot gold gained 0.3% to $5,038.73 per ounce, while US April gold futures advanced 0.6% to $5,060.60 an ounce. Spot silver jumped 1% to $81.49 an ounce, rebounding from a more than 3% an ounce fall in the previous session.

The move in precious metals tracked a slide in US bond yields on Tuesday (February 10) after data showed retail sales were flat in December. Economists said the stall reflected weaker spending on motor vehicles and other big-ticket items, pointing to a cooling consumer and a potentially slower growth path for the US economy heading into 2026.

Lower yields typically support bullion by reducing the opportunity cost of holding non-interest-bearing assets such as gold and silver. Market pricing currently signals expectations of at least two 25-basis-point rate cuts this year, with June seen as the likely starting point.

At the same time, policymakers signalled caution.

Cleveland Fed President Beth Hammack said the central bank faced “no urgency” to change rates this year, describing the economic outlook as “cautiously optimistic.” Traders now await the January non-farm payrolls report later Wednesday (February 11) and US inflation data due Friday (February 13) for clearer signals on the Fed’s policy path.

Domestic investor shift toward bullion

In India, investor behaviour continued to tilt toward precious metals in January as prices surged amid elevated geopolitical risks.

Industry data showed inflows into gold exchange-traded funds (ETFs)

nearly matched equity fund inflows for the first time, highlighting a clear flight to safety. Silver ETFs also saw a sharp rise in assets under management.

Aakanksha Shukla, AVP, Wealth Management at Master Capital Services, said equity inflows had moderated as investors adopted a more measured stance after earlier market gains. She noted that flows were not retreating from risk assets entirely but were shifting toward diversification through hybrid funds, arbitrage strategies, ETFs and gold products.

Despite the slowdown, equity schemes still attracted about ₹24,029 crore in January, indicating continued—though more selective—confidence.

Aditya Agrawal, CIO of Avisa Wealth Creators, highlighted steady SIP contributions above ₹31,000 crore and a record industry AUM of ₹81.01 lakh crore, driven largely by a rebound in debt funds and a surge in gold ETF demand.

Hemen Bhatia, CEO of Angel One AMC, pointed to a broader shift toward passive investing.

According to Bhatia, rising commodity allocations—alongside low-cost equity strategies—were seen as a way to balance growth with portfolio resilience.

-With Reuters inputs