Gold, Silver Prices Rise as US Yields Fall on Softer Retail Sales

Precious metals benefit from lower US Treasury yields amid signs of economic softening

Published on Feb. 10, 2026

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Gold and silver prices climbed on Wednesday as US Treasury bond yields fell following data showing December retail sales growth stalled, signaling a potential softening of the economy ahead of key jobs data. Lower US yields reduce the opportunity cost of holding non-yielding assets like gold, and often accompany macroeconomic shifts that tend to support precious metals.

Why it matters

The performance of gold and silver is closely tied to US interest rate policy, as lower yields make holding non-yielding precious metals more attractive. The latest retail sales data suggests the economy may be losing momentum, potentially prompting the Federal Reserve to cut rates sooner than previously expected, which would further boost the appeal of gold and silver.

The details

Spot gold rose 0.7% to $5,057.23 per ounce, while US gold futures for April delivery gained 1% to $5,081.40. Spot silver was up 2.3% at $82.56 per ounce. The gains came as US Treasury yields fell after the retail sales data, which showed consumer spending stalling in December. Lower yields reduce the opportunity cost of holding non-yielding assets like gold. Investors are now awaiting the January non-farm payrolls report and inflation data later this week for more clues on the Federal Reserve's monetary policy path.

  • The retail sales data was released on February 11, 2026.
  • The January non-farm payrolls report is due later on February 11, 2026.
  • Inflation data for February 2026 is scheduled to be released on February 13, 2026.

The players

Beth Hammack

President of the Federal Reserve Bank of Cleveland, who said the US central bank faces no urgency to change interest rates this year amid a "cautiously optimistic" outlook for economic activity.

Kyle Rodda

A senior market analyst at Capital.com, who said precious metals had become "very dislocated from fundamentals" in recent weeks, but that lower yields are "obviously supportive of gold today."

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What they’re saying

“Over the last couple of weeks, (precious metals) became very dislocated from fundamentals, so it pretty much decoupled from interest rate policy. Yields ⁠being lower are obviously supportive of gold today.”

— Kyle Rodda, Senior Market Analyst (Capital.com)

“After soft retail sales numbers, there's the expectation that perhaps, further and deeper rate cuts may be needed more imminently than previously thought.”

— Kyle Rodda, Senior Market Analyst (Capital.com)

What’s next

Investors will be closely watching the January non-farm payrolls report on February 11, 2026 and the February inflation data on February 13, 2026 for further clues on the Federal Reserve's monetary policy path and the strength of the US economy.

The takeaway

The rise in gold and silver prices amid falling US Treasury yields highlights how precious metals can benefit from signs of economic softening, as it reduces the opportunity cost of holding non-yielding assets and raises expectations of more dovish monetary policy from the Federal Reserve.