Bullion Price Rally: Gold, Silver Prices Soar In US After Weak Retail Sales Data; Fed Eyes Rate Cut

Gold and silver prices have seen a sharp rise following weak retail sales data from the United States. US Treasury bond yields have slipped to near one-month lows, making non-interest-bearing assets like gold and silver more attractive to investors.

How Much Did Gold, Silver Increase In Global Market?

Spot gold rose about 1.04 per cent to cross USD 5,083 per ounce. Silver performed even stronger. Spot silver jumped about 4.67 per cent, rising USD 3.75 to cross USD 84 per ounce, Jagran Business reported.

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What Do Experts Say About Rise?

Analysts say that falling bond yields create a supportive environment for gold and silver. Lower yields mean that the opportunity cost of holding safe but non-returning assets decreases. This is why precious metals tend to attract buying during economic slowdowns or when interest rate cuts are expected.

Why Did US Retail Sales Growth Slow Down In December?

Recent data showed US retail sales growth virtually halted in December. People pulled back on cars and major spending, signaling a slowdown in the economy. Markets are now anticipating increased pressure on the US Federal Reserve to cut interest rates.

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While some Fed officials appear reluctant to move rates too quickly, investors are watching key data ahead. Non-farm payrolls (jobs) data due today and inflation data due Friday could determine the future course of action.

A low interest rate environment is generally considered beneficial for gold and silver. Investors are once again looking to precious metals as a safe haven amid an uncertain global environment.