Amid fading hopes of rapid rate cuts by the US Federal Reserve following upbeat jobs data, safe-haven assets fell marginally in Thursday’s trade, while the firm US dollar also made precious metals less appealing to traders.
Earlier in the day, the April futures contract on Comex fell $33 per troy ounce to hit an intraday low of $5,065. At current levels, prices are trading at $5,088.
The data on Wednesday showed that the US economy created far more jobs than expected in January, which could make it more difficult for the Federal Reserve to continue cutting rates this year.
The US Bureau of Labor Statistics, in its shutdown-delayed report, said 130,000 jobs were added to nonfarm payrolls in January, well above forecasts for a rise of 70,000, while both November and December were revised down slightly.
The unemployment rate ticked lower to 4.3% from 4.4% in December, below forecasts for a reading of 4.4%, signalling a stabilizing labour market at the start of 2026.
Fed policymakers now look likely to keep rates on hold for longer after the data. Market expectations for a Fed cut of at least 25 basis points at the central bank’s March meeting had risen to about 20% before the jobs data but retreated after the jobs report and were last at about 8%, according to CME’s FedWatch Tool.
The stronger jobs data also pushed the US dollar higher in the previous session to 97, ending its three-day slide and making dollar-denominated commodities more costly for holders of other currencies.
Comex silver pushes back
After a $3.5 rally in the previous session, the March silver contracts on Comex have fallen $3 per troy ounce to reach the day’s low of $81.25.
Silver had been on a record-breaking rally before the sharp correction. In 2025, it gained about 141%, with the surge driven by safe-haven demand, Fed rate cut hopes, and growing industrial use, along with speculative flows, leveraged positioning, and options-driven trading.
Ponmudi R, CEO of Enrich Money, said COMEX Silver is currently trading in the $80–$87 zone after a steep correction from record highs above $121. While the higher timeframe structure remains bullish, the sharp pullback has pushed prices below key moving averages, reflecting short-term bearish pressure.
He noted that strong buying interest is observed in the $65–$70 support band, aligned with prior swing lows and long-term trend support. A sustained hold above this base, followed by a recovery and close above $85–$92, could revive upside momentum towards $95–$105 and eventually a retest of previous highs.
Ponmudi added that the medium- to long-term outlook remains constructive, supported by structural supply constraints and steady industrial demand, though volatility remains elevated.
On gold, Ponmudi said COMEX Gold is trading within the $5,000–$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.
He further stated that prices are consolidating above key moving averages, suggesting the corrective phase may be maturing. “Strong buying interest is visible in the $4,500–$4,700 support zone. Stability above this region could pave the way for renewed upside momentum, while a breakout above $5,200–$5,300 would strengthen the case for a retest of record highs,” he pointed out.
MCX gold drops over ₹1,400 per 10g, silver slips ₹8,500 per kg
In the domestic market, the gold April delivery contract on MCX dropped ₹1,402 per 10 grams to the day’s low of ₹1,57,353. The ₹8,500 per kilogram to the day’s low of ₹2,54,526″>March silver contract also slipped ₹8,500 per kilogram to the day’s low of ₹2,54,526.
(With inputs from Reuters)
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
