Gold rises as dollar, yields slip ahead of key US jobs data

By Noel John

Feb 11 (Reuters) - Gold ‌prices gained on ​Wednesday, ​buoyed by a weaker dollar and lower Treasury yields, while investors awaited key U.S. jobs data later in the day for clues ‌on the Federal Reserve's policy outlook.

Spot gold was 1% higher at $5,074.39 per ⁠ounce by 1022 GMT. U.S. gold futures for April delivery gained 1.3% to $5,098 per ounce.

"We’ve seen ‌a bit of a weaker ‌U.S. dollar during the past trading days, which has helped gold and is likely lifting the price today," said Julius Baer analyst Carsten Menke.

The U.S. ​dollar fell to a near two-week low, making greenback-priced gold more affordable for overseas buyers. [USD/]

Additionally, the benchmark 10-year U.S. Treasury yields fell to a near one-month ⁠low after data showed a dip in core U.S. retail sales in December and downward revisions to November ​and October figures.

Lower U.S. yields reduce the opportunity cost of holding non‑yielding assets such as gold.

The Labor Department's closely watched nonfarm ​payrolls report later today is expected to show ‌a likely 70,000 increase in jobs last month after 50,000 were added in December, a Reuters survey of economists showed.

It is ⁠also expected to show the unemployment rate steady at 4.4% last month and annual wage growth cooling.

The Bureau of Labor Statistics is expected to revise its annual benchmark, likely showing ⁠that the economy created 911,000 fewer jobs in the 12 months through March 2025 than ​previously estimated.

"Expectation of a slowdown in job additions in the U.S. – to be confirmed later today - is supporting the case that Fed can continue to cut interest rates this year," said ‌UBS analyst Giovanni Staunovo.

Investors expect at least two 25-basis-point rate cuts in 2026, according to CME Group's FedWatch tool. Bullion tends ‌to thrive in a low-interest-rate environment, as it is a non-yielding asset. [FEDWATCH]

Spot silver was ⁠up 5.4% at $85.02 per ounce, after ‌falling more than 3% ​in the previous session.

Spot platinum rose 4.3% to $2,176.95 per ounce, while palladium added 3.1% to $1,760.64.

(Reporting by Noel John in Bengaluru; Editing by ‌Elaine Hardcastle)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Commerzbank chair calls for review of German takeover rules after UniCredit bid
• Wartime election would 'destroy' Ukraine, Zelenskiy says
• ECB chief Lagarde 'ready to serve' WEF, Swiss newspaper reports