(Kitco Commentary) - Gold and silver broke back above the key levels we had spoke about on Friday as being critical to avoid being trapped in a range and experiencing another pullback. That level in gold was $5,000 which gold traded above today after opening at $4,989. Spot gold is currently showing a gain of around $100 or 2% at around $5,063 at the time of writing. Our line in the sand for silver was $80 and after opening at $78.61 took out that level of resistance and is exhibiting a more aggressive rise than gold. Spot silver is currently up around $5.60 or 7.19% trading near $83.50.
Both metals were aided by a very weak dollar today as investors are closely watching this week's release of U.S. nonfarm payrolls, consumer prices, and initial jobless claims for fresh signals on monetary policy, with markets already pricing in at least two rate cuts of 25 basis points in 2026.
"The big mover today (in gold prices) is the U.S. dollar," said Bart Melek, global head of commodity strategy at TD Securities, adding that expectations are growing for weak economic data, particularly on the labor front. This along with continued concerns about Fed independence took the US dollar index lower by 0.84% bringing it less than one point away from their four-month lows now at 96.91.
We also spoke of gold and silver’s technical outlook noting that both had held above their clouds on their Ichimoku studies on daily charts. That fact along with the width of the clouds and the color remaining green highlighted that both precious metals were still in a technically bullish set up and had not experienced any real chart damage from their recent pullbacks.
With their key levels to watch being taken out today and all other technical studies we are watching pointing towards higher prices the rest of the week should see prices in both gold and silver continue to rise.
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