11 February 2026 Punjab Khabarnama Bureau : Gold and silver prices moved higher in global and domestic markets after a series of softer-than-expected economic data from the United States weakened the dollar and boosted expectations of interest rate cuts by the Federal Reserve. With investors now turning their attention to the closely watched U.S. non-farm payrolls report, bullion markets remain on edge, balancing short-term gains with near-term uncertainty.
What Drove the Price Rise
The immediate trigger for the rally in precious metals was weaker U.S. macroeconomic data, including signs of slowing manufacturing activity and easing inflationary pressures. These indicators reinforced market expectations that the Federal Reserve may be nearing the end of its tightening cycle, with rate cuts becoming more likely later in the year.
Lower interest rate expectations typically support gold and silver prices, as these assets do not yield interest. When bond yields fall and the U.S. dollar weakens, bullion becomes more attractive to investors seeking a store of value.
Following the data release, the dollar index slipped from recent highs, providing additional support to gold and silver. Spot gold edged higher in international markets, while silver outperformed, benefiting from both safe-haven demand and its industrial use outlook.
Focus Shifts to U.S. Payrolls
Despite the recent gains, market participants remain cautious ahead of the U.S. non-farm payrolls report, which is expected to provide crucial insight into the strength of the American labour market. A strong jobs report could revive expectations of higher-for-longer interest rates, potentially capping bullion’s upside. Conversely, weaker employment numbers may further strengthen the case for rate cuts, offering fresh momentum to gold and silver.
Analysts say payroll data has become one of the most influential drivers of short-term price movements in precious metals. “If job growth slows meaningfully, it would validate the recent rally in gold,” said a commodities analyst. “But any upside surprise in payrolls could lead to profit-booking.”
Silver’s Dual Role
Silver has seen relatively stronger gains compared to gold, supported not only by monetary factors but also by optimism around industrial demand. The metal is widely used in electronics, solar panels, and electric vehicles, sectors that are expected to grow steadily over the medium term.
Market experts note that silver often amplifies gold’s moves—rising faster during bullish phases but also correcting sharply during sell-offs. This makes silver attractive for short-term traders but riskier for conservative investors.
Domestic Market Impact
In India, gold and silver prices also moved higher, tracking global cues and a softer dollar. Domestic prices were further influenced by currency movements, as fluctuations in the rupee against the U.S. dollar can magnify or dampen international price trends.
Jewellers reported moderate buying interest, with some consumers using recent price dips to make purchases ahead of the wedding season. However, sustained high prices have kept large-scale buying in check.
Market participants said that while investment demand remains steady through gold ETFs and digital platforms, physical demand is sensitive to sharp price movements.
Central Bank and Geopolitical Factors
Beyond U.S. economic data, central bank buying continues to provide a structural support to gold prices. Several emerging market central banks have been steadily increasing their gold reserves as part of diversification strategies away from the dollar.
Geopolitical tensions also remain an underlying support for precious metals. Ongoing conflicts and global political uncertainty have kept safe-haven demand alive, preventing sharp corrections even during periods of dollar strength.
Outlook for Investors
Experts suggest that the near-term outlook for gold and silver will remain data-dependent, with volatility likely around major U.S. economic releases. In the medium to long term, however, many analysts remain constructive on bullion, citing easing monetary conditions, geopolitical risks, and sustained central bank demand.
For investors, the current environment calls for a balanced approach. Long-term investors may consider accumulating gold on dips, while short-term traders should closely track U.S. data, especially inflation and employment indicators.
Silver, while offering higher upside potential, also carries greater risk due to its sensitivity to economic cycles. Investors are advised to allocate according to their risk appetite and investment horizon.
As markets await clarity from the upcoming payrolls data, gold and silver prices are likely to remain range-bound with a positive bias, reflecting the delicate balance between slowing economic momentum and central bank policy expectations.
Summary
Gold and silver prices rose after weak U.S. economic data pressured the dollar and boosted rate-cut hopes, while investors now await U.S. payrolls data for clearer direction.