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Gold, Silver Prices Dip as Dollar Gains on Strong US Jobs Data

Gold and silver prices fell moderately as the US dollar strengthened following unexpectedly strong US jobs data, which reduced expectations for near-term Federal Reserve rate cuts. The dollar's gain made dollar-priced bullion more expensive for holders of other currencies. Earlier price support had come from geopolitical tensions, highlighted by ongoing US-Iran negotiations following talks between US and Israeli leaders. Analysts view the current pullback as healthy profit-taking within a broader constructive long-term trend for both metals.

Key Points: Gold, Silver Prices Fall as Dollar Strengthens

  • Gold futures dip 0.24%
  • Silver futures fall 0.72%
  • Dollar index surges to 96.94
  • US job growth accelerated in January
  • Geopolitical uncertainties provide earlier support
2 min read

Precious metals' prices dip over dollar gains

Gold and silver prices declined as the US dollar rose following strong jobs data. Analysts discuss market trends and geopolitical factors.

"The largest increase in payrolls in 13 months likely exaggerates the labour market's health - Manav Modi"

New Delhi, Feb 12

Gold and silver prices dipped moderately on Thursday, as the US dollar strengthened.

MCX gold April futures dipped 0.24 per cent to Rs 1,58,371 per 10 grams on an intra-day basis. Meanwhile MCX silver March futures declined 0.72 per cent to Rs 2,61,124 per kg.

The dollar index surged to 96.94 on Thursday from 96.83 in the previous session, due to strong jobs data from the US that suggested underlying economic health. A stronger dollar made greenback-priced bullion more expensive for other currency holders.

Analysts said that US job growth unexpectedly accelerated in January and the unemployment rate fell to 4.3 per cent, signs of labour market stability that could give the Fed room to keep interest rates unchanged for some time while policymakers monitor inflation.

"The largest increase in payrolls in 13 months likely exaggerates the labour market's health, as revisions showed the economy added only 1,81,000 jobs in 2025 instead of the previously estimated 5,84,000," said Manav Modi, commodities analyst, Motilal Oswal Financial services Ltd.

Earlier, in international commodity markets, gold and silver prices had inched up amidst rising geopolitical uncertainties. After talks with Israeli Prime Minister Benjamin Netanyahu, US President Donald Trump informed that a "definitive" agreement was not reached on how to move forward with Iran. However, he added that negotiations with Tehran would continue.

"Gold has support at Rs 1,56,000 while resistance at Rs 1,60,500," an analyst said. COMEX Gold traded within the $5000-$5,150 band after witnessing a sharp correction from highs near $5,500-$5,600.

The broader uptrend remains intact, and the recent pullback appears to be healthy profit booking rather than structural weakness, market participants said.

COMEX Silver is currently trading in the $80-$87 zone after a steep correction from record highs above $121. The medium to long-term outlook remains constructive, supported by structural supply constraints and steady industrial demand, though volatility remains elevated, analysts said.

Investors remain keen on US inflation data due on Friday for more monetary policy cues and on the UK GDP data.

- IANS

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Reader Comments

R
Rohit P
The US job data controlling our gold prices here... shows how interconnected everything is now. But the article is right, the broader uptrend is intact. This is just a minor correction, not a crash.
M
Manav Modi
(As quoted in the article) Just to clarify my point for readers: while the headline US jobs number was strong, the revisions tell a different story. The market might be overreacting to the dollar's strength. The fundamental drivers for gold, especially geopolitical risks, haven't vanished.
S
Sarah B
Interesting to see the analysis. I do wish financial news articles like this one would explain terms like "COMEX" or "profit booking" a bit more for the average saver. Not everyone is a market expert.
A
Aditya G
Silver at ₹2.6 lakh per kg! Still remember when it was half that. The industrial demand point is key - with India's push for solar and electronics, silver's long-term story looks solid. Might be a better bet than gold for growth.
K
Kavya N
My father always says, "Sonay ki chamak kabhi kam nahi hoti" (The shine of gold never fades). A small dip doesn't matter for generational holding. We buy for security and festivals, not daily price changes.

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