Gold and silver prices continued to maintain positive momentum after the U.S. Non-farm Payrolls report came in weaker than expected. The data pressured the U.S. dollar and reduced expectations that the Federal Reserve would continue raising interest rates in the near term.

As markets continue to closely monitor the Fed’s monetary policy outlook, the movements in gold and silver show that investors are reacting strongly to signs of weakness in the U.S. labor market.

Gold and Silver Continue to Rise

Spot gold rose to around $4,184 per ounce, while spot silver climbed strongly to nearly $62.27 per ounce.

The main driver came from the weaker-than-expected Non-farm Payrolls report. When employment data shows signs of weakness, markets tend to expect the Fed to become less aggressive with monetary policy. This weakens the U.S. dollar and creates a more supportive environment for precious metals.

Normally, gold and silver benefit when the U.S. dollar declines, as precious metals become more attractive to investors holding other currencies.

Fed Expectations Ease, but Risks Remain

Although the weaker jobs report helped reduce expectations of a near-term rate hike, the overall market picture remains uncertain.

The U.S. 10-year Treasury yield is still holding around 4.5%. This remains a potential headwind for gold, as higher yields reduce the appeal of non-yielding assets such as precious metals.

In addition, markets have not completely ruled out the possibility that the Fed could raise interest rates one more time later this year. This means the current rally in gold and silver has some supportive factors, but it is not yet strong enough to confirm a fully secure uptrend.

Technical Outlook for Gold

From a technical perspective, gold needs to break above the $4,200 - $4,350 per ounce resistance zone to further strengthen bullish momentum.

If the price can break and hold above this area, the uptrend may gain stronger confirmation. On the other hand, if gold continues to face pressure around this resistance zone, the market could enter a short-term correction or consolidation phase.

For now, $4,200 per ounce is the near-term level to watch, while $4,350 per ounce acts as the next key resistance area.

Technical Outlook for Silver

For silver, the key resistance zone is currently around $64.00 - $64.50.

If silver breaks above this area, the upward momentum could continue to expand in the near term. Conversely, $60.05 will be the nearest support level to monitor. As long as silver holds above this support zone, its short-term bullish structure remains intact.

Compared with gold, silver is showing stronger momentum, reflecting relatively positive buying interest after the price held above key support areas.

Conclusion

Gold and silver are currently benefiting from three main factors: weaker-than-expected U.S. jobs data, a softer U.S. dollar, and expectations that the Fed may become less aggressive in the near term.

However, investors still need to remain cautious, as the U.S. 10-year Treasury yield remains around 4.5%, while the possibility of one more Fed rate hike later this year has not been completely eliminated.

In the short term, the $4,200 - $4,350 per ounce zone for gold and the $64.00 - $64.50 zone for silver will be important areas to watch. Price reactions around these levels could determine the next direction for precious metals.

📌 This content is for market commentary purposes only and does not constitute a buy or sell recommendation.

Source: Kitco