Gold Prices Rise Today (Feb 11) as US Treasury Yields Decline
Global gold prices climbed on Wednesday (Feb 11), supported by a decline in US Treasury yields following weaker-than-expected economic data from the United States.
According to Reuters, spot gold rose 0.3% to US$5,038.73, while gold futures gained 0.6% to US$5,060.60. Meanwhile, spot silver jumped 1% to US$81.49, reflecting renewed investor interest in precious metals.
Other precious metals also posted gains. Spot platinum increased 0.6% to US$2,098.78, and palladium edged up 0.2% to US$1,712.25.
US Treasury Yields Fall After Weak Economic Data
The decline in US government bond yields followed a series of economic indicators signaling potential slowing growth. The latest retail sales data showed unexpected stagnation in December, suggesting that consumer spending may be cooling ahead of key employment data releases.
Households reduced spending on motor vehicles and other big-ticket items, raising concerns that consumption and overall economic growth could slow at the start of the year.
Weaker economic data has strengthened expectations that the Federal Reserve (Fed) may have more room to implement interest rate cuts. Lower Treasury yields reduce the opportunity cost of holding non-yielding assets such as gold and silver, making them more attractive to investors.
Federal Reserve Outlook Remains Cautiously Optimistic
Despite softer data, Cleveland Federal Reserve Bank President Beth Hammack stated that the central bank does not face urgency to adjust interest rate policy this year. She described the economic outlook as cautiously optimistic.
However, investors are currently pricing in at least two 25-basis-point rate cuts in 2026, with the first expected in June. Historically, a lower interest rate environment tends to benefit safe-haven assets like gold, as reduced yields weaken the US dollar and increase demand for precious metals.