Emre Yumlu 
Gold and silver prices moved lower as investors adopted a cautious stance ahead of a busy week of U.S. economic data releases. With upcoming figures expected to influence the Federal Reserve’s interest rate outlook, market participants appear to be reducing exposure in precious metals, triggering a short-term pullback. Despite the decline, gold continues to trade at historically elevated levels.
Gold Holds Above the $5,000 Threshold
Spot gold declined by 0.7% to $5,029.49 per ounce, while prices were hovering near $5,035 at the time of reporting. The pullback followed a strong session earlier in the week, when gold gained roughly 2% after the U.S. dollar index fell to its lowest level in more than a week.
Gold previously reached an all-time high of $5,594.82 on January 29, underscoring the strength of the broader uptrend despite recent volatility.
Silver Sees Sharp Swings After Recent Surge
Silver prices have shown even greater volatility. Spot silver fell 2.1% to $81.64 after surging nearly 7% in the previous session. The metal reached a record high of $121.64 on January 29, highlighting the intensity of recent price swings.
Market observers note that speculative positioning has played a significant role in driving silver’s sharp fluctuations, making the metal particularly sensitive to short-term sentiment shifts.
Geopolitical Risks Continue to Support Gold Long Term
According to Tastylive Global Macro Head Ilya Spivak, ongoing economic and geopolitical competition between the United States and China is expected to persist in the coming years. This environment is viewed as structurally supportive for gold over the long term, even if short-term price action remains tied to monetary policy expectations.
In the near term, however, investors remain focused on signals from the Federal Reserve and incoming macroeconomic data.
Fed Policy Expectations Remain Central
White House economic adviser Kevin Hassett recently stated that U.S. job growth could slow in the coming months due to moderating labor expansion and productivity gains. His comments reinforced expectations that interest rate cut discussions within the Fed are ongoing.
Markets are currently pricing in at least two 25-basis-point rate cuts in 2026, with the first expected as early as June. Historically, gold tends to perform better in lower interest rate environments due to its lack of yield.
Markets Await Key U.S. Data Releases
This week’s U.S. calendar includes December retail sales, January Consumer Price Index data, and nonfarm payrolls figures. These releases are expected to play a decisive role in shaping expectations for the Fed’s policy path.
Other Precious Metals Under Pressure
The broader precious metals complex also faced selling pressure. Spot platinum declined 2.1% to $2,084.09, while palladium fell 1.7% to $1,710.75, reinforcing the cautious tone across the sector.
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