Gold and Silver Surge on Revised Fed Outlook

Precious metals prices climbed as weaker US jobs data led investors to scale back expectations for further Federal Reserve rate hikes in 2026. Gold moved above the $4,100 level after rebounding from a key support zone, while silver also posted strong gains for the session. Analysts noted the rally was driven by the easing of hawkish Fed risks, which improves the relative appeal of non-yielding assets.

US Dollar Declines Broadly on Jobs Data

The US Dollar weakened against a basket of major currencies after a softer US non-farm payrolls report prompted a reset of market expectations for Federal Reserve policy. The Euro, British Pound, and Australian Dollar all advanced against the greenback amid the risk-on mood. The Japanese Yen also staged a sharp recovery as the data weighed on the dollar and reduced the outlook for cumulative rate hikes by year-end.

Diverging Signals from Global Central Banks

While markets are repricing for a less aggressive Federal Reserve, now widely expected to keep rates on an extended hold, other central banks face different economic backdrops. The Bank of England is monitoring a slight rise in business inflation expectations for the year ahead. In contrast, analysts suggest a stable Canadian labor market favors a policy pause from the Bank of Canada, and there is growing market doubt regarding further rate hikes from the European Central Bank.