Gold prices drop
Gold prices declined on Thursday after fresh data showed strength in the US labor market. Gold futures fell $117, or 2.3%, to $4,981 per ounce. Spot gold traded near $5,040 during the day. The fall came after the US reported better-than-expected job growth for January. The economy added 130,000 nonfarm payroll jobs, higher than the forecast of 70,000. The unemployment rate slipped to 4.3% from 4.4%. The data showed that the labor market remains stable. This reduced expectations that the Federal Reserve will cut interest rates soon. Gold does not pay interest, so it often becomes less attractive when rates stay high. Before the jobs report, traders were expecting a possible rate cut in March. After the data, the chances of a rate cut dropped sharply. According to CME FedWatch estimates, the probability fell from about 20% to just 8%.
Silver falls, too
Silver prices fell even more sharply. Silver futures dropped nearly 9% to $76.53 per ounce. Spot silver traded around $82.90, showing high volatility during the session. Market experts said the sharp fall was due to heavy profit booking. Silver had seen a strong rally in 2025, rising more than 100% during the year. After such gains, investors often lock in profits when market sentiment changes. The gold-silver ratio widened to around 61 to 1.
US dollar strengthens
The US Dollar Index rose to 97 after the jobs data was released. A stronger dollar makes gold and silver more expensive for buyers outside the US, often leading to lower demand and falling prices. US Treasury yields also moved higher, adding to the pressure on precious metals. Higher yields make fixed-income investments more attractive compared to gold and silver. Other commodities also declined. West Texas Intermediate crude oil fell more than 3% to $62.60, while Brent crude dropped nearly 3% to $66.26. Investors will now watch upcoming US inflation data and comments from Federal Reserve officials. These factors will help decide whether gold and silver stabilize or face more pressure in the coming days.
