Gold and silver experienced their strongest weekly gains since January last week, driven by falling US bond yields and a weaker dollar amid subdued job growth and altering interest rate prospects, sparking renewed investor optimism and forecasts of further rises.
Gold and silver both staged a sharp recovery last week as falling bond yields and a weaker dollar lifted demand for precious metals after US economic data reinforced expectations of an interest rate cut. Gold finished the week more than 7% higher at about $4,340 an ounce, its strongest weekly gain since January, while silver rose roughly 6%, according to the Arabic-language report published by Al Bilad Press.
The move was notable for its speed as much as its size. Gold’s biggest session came on Wednesday, when it jumped more than 5% in a single day, one of its strongest performances this year. Yet even after the rebound, both metals remain well short of the peaks reached in January. Gold started 2026 close to $4,300 an ounce and is still around 22% below its record high of roughly $5,600. Silver ended last week near $63.30 an ounce, leaving it down about 11% since the start of the year and roughly 46% below its January peak near $118.
The catalyst came from the US labour market. Data showed the economy shed about 23,000 jobs in July, far below expectations for a gain of about 80,000, prompting a fall in Treasury yields and the dollar. Markets also cut the odds of a September rate increase from above 50% to around 40%. That backdrop matters because lower yields reduce the opportunity cost of holding assets such as gold and silver, which do not pay interest. Silver has an added support in industrial demand, particularly from solar power, electric vehicles, data centres and artificial intelligence infrastructure, according to the report.
The rebound has also revived debate over how much further the metals can run. Al Bilad Press said several major banks see gold ranging between $4,250 and $5,000 an ounce by the end of 2026, while silver forecasts sit between $55 and $80. More recent research from OCBC points to a more cautious near-term view, citing higher real yields, a firmer dollar and a more hawkish Federal Reserve. Goldman Sachs, by contrast, has argued that central bank buying and easing by the Fed could still support gold into 2026. For now, the broader direction for both metals appears likely to hinge on US rate expectations, the dollar and Treasury yields, with silver offering greater upside if speculative appetite returns.
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