Gold and other precious metals posted gains on Thursday after U.S. job market data showed continued softening, reinforcing expectations for Federal Reserve rate cuts despite a firmer dollar and higher Treasury yields capping advances.

Current Gold Price Performance

Spot gold added 0.1% to $4,456.98 per ounce, recovering from Wednesday's profit-taking decline. U.S. gold futures for February delivery also firmed 0.1% to $4,465.70. The precious metal remains near record territory after hitting an all-time high of $4,549.71 on December 26.

Gold ended 2025 with a remarkable 64.4% gain, marking the biggest yearly increase since 1979.

Labor Market Data Supports Fed Easing Case

U.S. job openings dropped to a 14-month low in November according to JOLTS data, while hiring resumed its sluggish pace, pointing to ebbing demand for labor amid policy uncertainty related to import tariffs. The softer employment data reinforced market expectations for monetary policy easing.

"The data from the labor market continues to support the case for Fed rate cuts, which has been underpinning gold prices," market analysts noted. However, gains were tempered by the dollar holding steady near a more than two-week high and the benchmark 10-year U.S. Treasury yield rising from Wednesday's one-week low.

Federal Reserve Rate Cut Expectations

Investors currently expect at least two Fed rate cuts this year, with market focus turning to Friday's non-farm payrolls data for additional labor market insights. Non-yielding assets like gold tend to perform well in low-interest-rate environments and during periods of geopolitical or economic uncertainty.

Geopolitical Developments

Geopolitical tensions continued to provide support for safe-haven assets. The U.S. seized two Venezuela-linked oil tankers in the Atlantic Ocean on Wednesday, one sailing under Russia's flag, as part of President Donald Trump's aggressive push to control oil flows in the Americas.

Other Precious Metals Performance

Other precious metals also posted gains during the trading session, reversing Wednesday's sharp declines.

Spot silver lost 0.7% to $78.70 per ounce after hitting an all-time high of $83.62 on December 29. HSBC forecasts silver will trade between $58 and $88 an ounce in 2026, driven by tight physical supply and robust investment demand, but warned of a potential market correction as supply constraints ease. Spot platinum rose 0.2% after scaling a record peak of $2,478.50 last Monday.

Silver prices surged by ₹5,000 to hit a new record high of ₹2.56 lakh per kilogram in the national capital on Wednesday, driven by escalating US-Venezuela tensions and robust industrial demand. The All India Sarafa Association reported this latest milestone as safe-haven buying intensified across precious metals markets.

The white metal's exceptional rally continues to captivate traders, with geopolitical tensions providing additional momentum to an already bullish trend supported by supply constraints and strong industrial usage.

Silver's Record-Breaking Performance

Silver demonstrated remarkable strength with a substantial single-day gain, reflecting heightened investor interest in safe-haven assets.

Traders attributed the surge to escalating tensions between the US and Venezuela, which boosted safe-haven appeal. Supply-side constraints and strong industrial usage further amplified silver prices, with sustained buying by investors and China's export curbs on silver that came into effect from January 1 adding to the momentum.

Gold Experiences Marginal Decline

In contrast to silver's stellar performance, gold of 99.9% purity slipped marginally by ₹100 to ₹1,41,400 per 10 grams (inclusive of all taxes), compared to the previous close of ₹1,41,500 per 10 grams.

Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, explained that gold prices experienced a slight decline as investors took profits following a recent rally. A recovery in the US dollar also weighed on gold prices, though persistent geopolitical risks continue to support safe-haven demand for precious metals, limiting sharp downside.

International Market Dynamics

Global precious metals markets showed mixed signals with silver posting gains during intraday trading despite closing lower in international markets.

During the international trading session, silver climbed by $1.45, or 1.80%, to hit an intraday high of $82.75 per ounce, demonstrating the metal's volatile but bullish trajectory.

Expert Outlook and Price Targets

Renisha Chainani, Head - Research at Augmont, provided insights into silver's future trajectory. "We could see some profit booking from here, but when it breaks the previous top again, the next level to watch for is $84 (₹2,66,000 per kg) and $88.50 (₹2,80,000 per kg)," Chainani stated.

Market experts continue to highlight the structural factors supporting silver's performance, including supply deficits, industrial demand from solar and electronics sectors, and geopolitical uncertainties driving safe-haven flows into precious metals.