Gold and silver prices fall, strong employment data dampen rate cut expectations

LootboxPhobia · 2026-02-12T02:57:22+00:00

On Thursday Asian trading hours, gold and silver prices declined due to stronger-than-expected US employment data, weakening market expectations of Federal Reserve rate cuts. Although precious metals fell, safe-haven demand still exists, limiting the decline. Spot gold dropped to $5,060.47 per ounce, and silver fell 1.7% to $82.88 per ounce. The market is focused on the upcoming US inflation and employment data releases.

LootboxPhobia

2026-02-12 02:57:22

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Investing.com - On Thursday during Asian trading hours, gold and silver prices declined following stronger-than-expected US employment data, which dampened market expectations for deeper Federal Reserve rate cuts. However, ongoing safe-haven demand limited the decline.

Precious metal prices still retained most of their gains for the week, supported by a weak dollar and tensions between Iran and the US, which kept safe-haven assets attractive.

Spot gold fell 0.5% to $5,060.47 per ounce, while April gold futures declined 0.3% to $5,081.30 per ounce, as of 20:32 Eastern Time (01:32 Beijing Time).

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Spot silver dropped 1.7% to $82.8810 per ounce, and spot platinum declined 1.1% to $2,115.98 per ounce.

Gold’s decline came after US non-farm payrolls data released on Wednesday showed stronger-than-expected results.

The data indicated an unexpectedly robust labor market, reducing market expectations that a cooling employment situation would prompt the Fed to cut rates further.

The market now prices in a 94.1% chance that the Fed will hold rates steady in March, with a similar trend in April at 78%, according to CME FedWatch.

This data also triggered a overnight rebound in the dollar, putting pressure on metals markets. However, the dollar stabilized during Asian trading hours, still facing some losses this week, partly due to pressure from the strong rebound of the yen.

More US economic indicators will be released this week, including the January Consumer Price Index inflation data on Friday. Inflation and labor market strength are the two most important factors the Fed considers when setting interest rates.

Later Thursday, weekly initial jobless claims data will also be released.

Safe-haven demand for precious metals remains due to ongoing tensions between the US and Iran. Although both sides reported some progress in nuclear negotiations over the weekend, Washington is seen as preparing to deploy a second aircraft carrier to the Middle East.

US President Donald Trump has also repeatedly warned Tehran to accept an agreement with Washington and met with Israeli President Benjamin Netanyahu on Wednesday.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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